Microsoft has officially confirmed that effective August 1, 2026, the prices of its Xbox Series X and Series S consoles will increase significantly. The Redmond-based company cited rising component and logistics costs as the primary drivers, a trend that has already affected rivals Sony and Nintendo. The new pricing structure includes hikes ranging from $100 to $150 depending on storage capacity, while the 2 TB model will be phased out entirely.
$100 increase for 512 GB models
The 512 GB Xbox Series S, previously the most affordable way to enter the current generation, will jump from $299 to $399. That represents a 33% increase that may push budget-conscious gamers to consider alternatives or delay their purchase. Microsoft noted that final prices may vary by retailer and region, but the global hike will take effect on the specified date.
$150 increase for 1 TB models
For the 1 TB versions of both the Xbox Series X and Series S, the price will climb by $150. The Series X, which previously cost $499, will now retail at $649, while the Series S 1 TB moves from $349 to $499. These increases make Microsoft consoles less competitive, especially as inflation and semiconductor shortages continue to burden the entire tech industry. By comparison, Apple recently raised the Mac mini M4 Pro by $200 for similar reasons, highlighting a widespread challenge.
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Discontinuation of the 2 TB variant
Microsoft also announced it will end production of the 2 TB SKU for both the Series X and Series S. This move follows lackluster sales of the high-capacity model, likely due to its premium price (up to $599) and the growing popularity of proprietary expansion cards. Those wishing to purchase a console with maximum onboard storage should seek remaining stock through retail channels before supplies run out.
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Community reaction has been swift and largely negative. Forums and social media are filled with criticism, with many calling the price hike a step backward from Microsoft's promise of accessible gaming. Others argue that console prices had remained unusually stable for years and that increases were inevitable. It remains to be seen whether competitors will follow suit or attempt to absorb costs to gain market share.
For further context on how hardware price hikes affect the industry, we recommend reading the related article on Apple's Mac mini M4 Pro price increase. Additionally, the Wikipedia page on Xbox Series X and Series S provides detailed technical specifications.
Source: https://www.androidauthority.com/microsoft-xbox-price-increase-in-august-3681588
