Microsoft has announced that they are once again increasing the price of Xbox consoles.
Starting August 1st, the 512GB Series S will cost $499.99, which is $100 more than its current price and 50% more than when it launched in 2020.
Meanwhile, the cheapest Series X console (1TB, no disc drive) will cost $749.99, an increase of $150, while the most expensive 2TB Galaxy Black Series X will be discontinued.
Here’s a list of the new Xbox prices:
- Series S 512GB – $499.99 (up $100)
- Series S 1TB – $599.99 (up $150)
- Series X 1TB (digital) – $749.99 (up $150)
- Series X 1TB (disc drive) – $799.99 (up $150)
- Series X 2TB Galaxy Black – Discontinued
In a statement, Microsoft said that the price increases are a result of “the current components crisis” that has impacted the global consumer electronics market.
“Last October, we increased XBOX console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options,” the statement read.
“Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles.”
“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.”
Microsoft has also announced new programs to offer more affordable ways to buy Xbox consoles, which includes ‘buy now, pay later’ plans and interest free financing for up to 12 months.
Microsoft is also working with retail partners to offer players “previously played consoles” at lower prices, as well as certified refurbished consoles via the Microsoft Store.
Today’s price hike announcement is the third occasion that Microsoft has risen console prices since the start of 2025. Earlier this year, Sony announced that they would be increasing PS5 prices by $100, claiming that the “global economic landscape” had forced their hand.
Last month, Nintendo also announced that it would be raising the price of the Switch 2 in the US, Canada, Europe and Japan, after reviewing “changes in market conditions” and the “global business outlook”.
Rising console prices are just one part of a larger issue plaguing the consumer electronics market, as component costs continue to rise due to demand from AI data centers.