Microsoft has announced a third price increase for Xbox Series X|S consoles, effective August 1

Microsoft has confirmed another round of price increases for its Xbox Series X and Series S consoles, citing a dramatic rise in storage and memory costs as the driving factor.

The details:

• The Xbox Series X will increase from $649.99 to $799.99 (+$150), while the Xbox Series S rises from $399.99 to $499.99 (+$100). Both increases take effect on August 1, 2026. Microsoft will also discontinue the 2TB model alongside the change.
• In its official statement, Microsoft said "console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027." The company noted that consoles are typically sold below the cost of manufacture, making them especially vulnerable to component cost increases compared to other consumer electronics.
• This is the third price hike for Xbox Series X|S since the consoles launched - a significant escalation that puts the Series X at $799.99, $150 above its original launch price.
• To offset the increase, Microsoft is introducing a buy-now-pay-later programme offering short-term, interest-free instalments through Microsoft Stores, alongside 0% APR financing for up to 12 months through Amazon and certified refurbished consoles available at up to $100 off MSRP.
• The increase is worldwide and follows similar moves across the industry. Nintendo raised Switch Online prices in Japan earlier this month, and the broader memory shortage - linked in part to AI data centre demand - has been cited by multiple hardware manufacturers as a growing pressure on pricing.