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Xbox to Raise Console Prices by $100 to $150 Starting August 1

The price increase signals that AI-driven demand for memory components is structurally raising console manufacturing costs, making it harder for platform holders to subsidize hardware at traditional price points.

Reporting from 4 sources: GAME Watch (Impress), 4Gamer.net, Denfaminicogamer, GIGAZINE.

Xbox to Raise Console Prices by $100 to $150 Starting August 1

Microsoft announced on June 25 that it will raise prices for Xbox consoles worldwide starting August 1, 2026. The Xbox Series S 512GB model will increase by $100 to $499.99, and the Xbox Series X 1TB Digital Edition will increase by $150 to $749.99. The Xbox Series S 1TB model will go from $449.99 to $599.99, and the Xbox Series X 1TB disc model will go from $649.99 to $799.99. The 2TB Galaxy Black Special Edition will be discontinued while supplies last. Microsoft cited a more than 2.5 times increase in the cost of storage and memory components, driven by rising demand for NAND flash and DRAM from AI data centers. The company said it had hoped to avoid further price increases after raising prices in the U.S. in October 2025, but component costs are expected to double again by fall 2027. To make consoles more accessible, Microsoft is expanding interest-free installment payment options and offering certified refurbished consoles at up to $100 off. Prices for Japan and other regions will be announced later.

Microsoft had hoped to avoid further price increases after raising Xbox console prices in the U.S. by $20 to $70 in October 2025, but component costs have continued to climb. The company said game consoles are generally sold below manufacturing cost, and the current component supply crisis is affecting the entire consumer electronics industry. Alongside the price hike, Microsoft announced new measures to make consoles more accessible: expanded interest-free installment payment options, 0% APR financing for up to 12 months on Amazon, and a program for more affordable pre-owned consoles. Certified refurbished consoles are available at the Microsoft Store for up to $100 off MSRP. The 2TB Galaxy Black Special Edition will be discontinued. Prices for Japan and other regions have not been announced yet.

Synthesized by Yomimono from the 4 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.

Sources