Microsoft Is Increasing The Cost Of Xbox Consoles, Again, Starting In August

After hiking the price of Xbox consoles in October 2025, Microsoft is once again increasing the cost of Xbox consoles worldwide starting August 1. In a June 25 Xbox Wire blog post, the company confirmed that the 512 GB model will jump up by $100 while the 1 TB model will go up by $150. This puts the Series S at $500 and the Series X at $800. As a result of the price increase, Microsoft is discontinuing the 2 TB Xbox consoles. The company explained that although it spent "the last several months working with suppliers on options," it had to enact another price hike because "console storage and memory prices have increased by more than 2.5x." It also expects another doubling by fall 2027, which could mean we'll see another price hike not long after. "The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles," the company said in its Xbox Wire post. "Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make." To assuage the price hike, however, Microsoft is implementing several programs to make buying an Xbox "more accessible." This includes a Buy Now, Pay Later option; interest-free financing plans; a Certified Refurbished Consoles program for up to $100 off; and a "previously played consoles" option, which sounds a lot like buying a used console at GameStop. This is the third price increase Microsoft has implemented following the two that came last year. In May 2025, the company jacked up the prices of Xbox consoles between $80 and $100 (depending on the model), and then again in October 2025 between $20 and $70 (though this increase only affected those buying consoles in the US). Game consoles are really pricing themselves out of relevancy.