Microsoft will raise prices across the Xbox line starting Aug. 1, with some models increasing by as much as $150, the company said, citing rising costs for components and memory.
Which models get more expensive and a 2 TB option removed
The price changes affect almost the entire Xbox family. The Xbox Series S will rise from $299 to $499.99. The Series X without a disc drive will be listed at $749.99, and the disc-drive version will cost $799.99.
Depending on the model, the increases range from $100 to $150. Microsoft also said it will discontinue the 2 TB Series X model, removing one of the higher-storage options from its lineup.
By comparison, at launch in 2020 the Series S carried a $299 price and the Series X was $499, figures that are no longer comparable to today’s pricing.
Microsoft cites surging component and memory costs
Microsoft attributed the adjustments mainly to higher component costs. The company noted that it already raised Xbox prices in the U.S. last October by $20 to $70, and that the situation has worsened since then.
In an announcement, Microsoft said storage and memory costs for consoles have “more than doubled — to over 2.5 times previous levels” and that it expects those costs to double again by fall 2027.
The company emphasized this pressure is industry-wide: electronics makers broadly are facing higher memory and storage prices, which ultimately affect consumers.
Microsoft also acknowledged internal restructuring at Xbox and said the team is preparing for potential deeper changes behind the scenes.
Options Microsoft is offering to soften the impact
To keep consoles accessible despite higher sticker prices, Microsoft said it is promoting alternative purchase paths.
Those measures include installment plans and “buy now, pay later” options, interest-free financing at partner retailers such as Amazon, and programs to offer refurbished consoles at lower prices. The company is also pursuing new retail agreements with selected partners.
- Installment plans and buy-now-pay-later options
- Interest-free financing at partner stores
- Refurbished consoles offered at reduced prices
- New agreements with selected retailers
Industry trend toward higher hardware costs
The new Xbox prices underscore an ongoing industry trend: rising hardware costs and slimmer room for price reductions. Microsoft framed the adjustments as necessary to keep Xbox competitive while facing higher input costs that are increasingly passed to buyers.
