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Microsoft significantly increases Xbox prices worldwide and withdraws 2TB model citing “components crisis”

Microsoft is raising Xbox console prices from August 2, citing higher costs for storage and memory. The Xbox price increase affects several Series S and Series X models in the United States, while the 2TB model is being withdrawn. Prices for other markets had not been confirmed when the change was announced.

Image credit: Xbox

Xbox price increase: updated US prices

Based on the current US recommended retail prices, the announced changes are:

  • Xbox Series S 512GB: rises from $399.99 to $499.99.
  • Xbox Series S 1TB: rises from $449.99 to $599.99.
  • Xbox Series X 1TB Digital: rises from $599.99 to $749.99.
  • Xbox Series X 1TB: rises from $649.99 to $799.99.

The 512GB models are increasing by $100, while the listed 1TB models are increasing by $150. The 2TB variant will be discontinued. These are US prices; buyers elsewhere should check local pricing once Microsoft confirms it. Retail prices can also differ by market and retailer, so compare the listed price with the local recommended price before purchasing.

Why Microsoft says Xbox prices are going up

Microsoft says rising costs for console storage and memory are behind the decision. The company noted that these components had become more than 2.5 times as expensive and said it expected their prices to double again by fall 2027. It described the pressure as an industry-wide components crisis, with consoles particularly affected.

The company also explained that consoles are commonly sold for less than their manufacturing cost, unlike many other consumer electronics. That can make increases in essential components more difficult to absorb. Microsoft had raised prices previously in October and said it had hoped another adjustment would not be necessary.

Ways to make an Xbox purchase more affordable

Microsoft pointed to several options for customers concerned about the higher prices. The company said buyers could use buy-now-pay-later options for purchases through the Microsoft Store, interest-free financing through Amazon, or look for previously played consoles offered through retail partners.

Microsoft also said Certified Refurbished Consoles are available through its stores at up to US$100 below the manufacturer’s suggested retail price. Check the exact condition, warranty, included accessories, and final price before choosing a refurbished or previously played console. Financing can spread payments over time, but review the repayment terms and eligibility requirements first.

What buyers should consider

If you are planning to buy an Xbox, compare the current price with the announced price and confirm whether the change has taken effect in your region. A lower-capacity model may cost less, but consider how much storage you need for your games. Anyone interested in the 2TB model should verify availability with local retailers, since Microsoft says the variant is being withdrawn.

The Xbox price increase means the listed US Series S and Series X models will cost more from August 2, while international pricing remains unconfirmed in the announcement. Checking local prices, storage capacity, and purchase terms can help you decide whether to buy now or consider a refurbished console.

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