Xbox Console Prices Set to Rise Globally This August

Microsoft is set to increase the price of its Xbox gaming consoles worldwide effective August 1. The decision, which follows a similar move by Apple, impacts both the Series S and Series X lineups as the company grapples with a significant surge in component costs.

Alongside the price hikes, Microsoft confirmed it is discontinuing the 2TB model of its console. This adjustment comes less than a year after the company last implemented price increases for its gaming hardware in the United States.

New Xbox Pricing Structure

The upcoming adjustments represent a substantial increase for consumers, with 512GB models rising by $100 and 1TB versions seeing a $150 hike. The updated pricing is as follows:

• Xbox Series S 512GB: $499 (previously $399)
• Xbox Series S 1TB: $599 (previously $449)
• Xbox Series X 1TB Digital: $750 (previously $599)
• Xbox Series X 1TB Disc: $800 (previously $649)

The Impact of AI on Hardware Costs

Microsoft attributed the price adjustments to the soaring costs of memory and console storage, which are currently over 2.5 times higher than previous levels. The company further warned that these expenses could potentially double by the fall of 2027.

This industry-wide pressure is largely attributed to the rapid expansion of AI infrastructure. As tech giants prioritize massive AI systems, the demand for advanced memory and storage chips has tightened supply chains, directly inflating the cost of consumer electronics. This trend is mirrored by Microsoft‘s competitors, including Sony, which recently raised the price of the PS5 Digital, and Nintendo, which implemented a more modest increase for the Switch 2.

Mitigating the Financial Burden

To offset the impact on gamers, Microsoft announced plans to broaden access to more affordable hardware. The company is developing programs to sell previously played consoles at reduced price points.

Furthermore, the company is promoting flexible payment options for new hardware purchases. Customers shopping at Microsoft Stores will gain access to enhanced “buy now, pay later” programs, while Amazon shoppers can utilize 0% APR financing for up to 12 months on eligible Xbox consoles.