Buying a new Xbox has become significantly more expensive in the US, Europe, and the UK starting August 1, 2026. The previously announced price increases for the Xbox Series S and Series X are now in effect, with some models seeing hikes of over 200 euros compared to their original launch prices. This move follows a earlier price adjustment in October 2025 and reflects the ongoing global shortage of memory and other components, driven largely by the AI boom.
US Prices Rise by $100 to $150 Across Most Models
In the United States, all Xbox models with 512GB of storage have gone up by $100, while 1TB systems are now $150 more expensive. The 2TB models have been completely discontinued. The new US pricing sees the Xbox Series S 512GB at $500, the Series S 1TB at $600, the Series X 1TB digital edition at $750, and the Series X 1TB with disc drive at $800. These increases are substantial and put the top-tier console at a price point that rivals mid-range gaming PCs.
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European Prices Surge, Disc Version Hits 800 Euros
Europe has seen some of the steepest percentage increases. The entry-level Xbox Series S 512GB jumps from 350 to 500 euros, while the 1TB version rises to 600 euros from 400. The Series X digital edition now costs 750 euros, but the disc-based model is the biggest jump, going from 600 to 800 euros. Since the console originally launched at 500 euros in 2020, the total increase over six years is 300 euros. At current exchange rates, 800 euros is roughly $920, making it the most expensive Xbox ever sold in the region.
UK Market Sees 430 Pounds for Cheapest Model
In the UK, the cheapest Xbox, the Series S 512GB, now costs 430 pounds, up from 300 pounds. The Series X with disc drive reaches 670 pounds, compared to 500 previously, while the digital version is set at 600 pounds. These price points could deter many potential buyers, especially as the cost-of-living crisis continues to affect household budgets.
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Memory and Component Shortages Drive Costs Up
Microsoft had already raised prices in October 2025 but had hoped further increases would not be necessary. However, the company has stated that console storage and memory prices have increased by more than 2.5 times, with expectations of another doubling by fall 2027. This is fueled by the AI revolution, which is consuming massive amounts of memory chips and other components, squeezing supply for gaming hardware. A report from Windows Central revealed that Microsoft is losing about 150 dollars per console sold, making the price hikes a necessary move to stem losses, despite the risk of alienating customers.
Tariff Refunds Not Passed on to Consumers
Microsoft, along with Sony and Nintendo, is set to receive tariff refunds from the US government on imported components. However, none of the companies have announced any plans to pass those savings on to consumers who have already paid higher prices. This decision has drawn criticism, especially in light of the already-high inflation rates. Many gamers may postpone upgrading their consoles, waiting for sales or considering the used market instead.
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Financing Options and Refurbished Consoles Offer Some Relief
To soften the blow, Microsoft has rolled out new Buy Now Pay Later and 0% APR financing options. The company also continues to sell certified refurbished Xbox consoles at lower prices. These alternatives can help budget-conscious consumers stay within the Xbox ecosystem. However, it remains to be seen if they will be enough to offset the overall price increases.
Comparison with PS5 and Switch 2
The situation is not unique to Xbox. The PlayStation 5 saw its latest price increase in April 2026, and Nintendo has announced a Switch 2 price hike for September. This indicates a broader industry trend driven by rising production costs and component shortages. Consumers should expect higher prices for console hardware until supply chains stabilize. In the meantime, those looking for a bargain might consider used consoles or previous-generation models, as also suggested by the recent analysis of GPU price hikes by Nvidia and AMD.
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For those interested in the broader context, the GPU price increases are a related issue worth examining. Additionally, Microsoft's pricing strategy could have long-term effects on brand reputation, as discussed in our article about how a territory's reputation can burn in two days. Finally, the rising cost of storage and memory affects not just gaming but also cloud services, as highlighted in our guide on MongoDB Atlas setup.
Source: https://www.gamespot.com/articles/xbox-price-hikes-are-now-in-effect-worldwide
