Microsoft raises Xbox Series X/S prices, effective Aug 1

Microsoft announced on Thursday, June 25, 2026, that it will raise the prices of its Xbox Series X and S consoles worldwide, effective August 1. This marks the third price increase for the current-generation hardware in just over a year.

The new pricing will see 512GB models increase by $100, while 1TB models will rise by $150. Microsoft is also discontinuing the 2TB Xbox Series X model. After the changes, the entry-level Xbox Series S (512GB) will cost $499.99, and the disc-drive version of the Xbox Series X will reach $799.99. The digital-only Xbox Series X will be priced at $749.99.

In a statement, the company attributed the hikes to a severe global shortage of memory and storage components, a crisis it says is driven by massive demand from artificial intelligence data centers. Microsoft stated that console storage and memory prices have increased by more than two and a half times and are projected to double again by the fall of 2027.

The company acknowledged the difficulty of the increases, noting that consoles are traditionally sold at or below their manufacturing cost, with profits recouped through software and services. The current component crisis, it said,...