Xbox Series X and Series S price hike announced ahead of GTA 6 launch: Check new prices here
Microsoft is increasing Xbox Series X and Series S prices again, citing rising memory and storage costs. The company has also discontinued the 2TB Xbox console.
Published By: Shubham Arora | Published: Jun 26, 2026, 01:30 PM (IST)
Buying a new Xbox console is about to become more expensive. Microsoft has announced another round of price hikes for its Xbox Series X and Series S lineup, just months after increasing prices in the US. The latest changes will take effect from August 1 and affect multiple console variants.
The company says the decision has been driven by the rising cost of memory and storage components, an issue that has been affecting the wider consumer electronics industry. Microsoft also confirmed that the 2TB Xbox model will no longer be sold.
The announcement comes shortly after Apple increased the prices of several MacBooks and iPads in multiple markets, with both companies pointing to higher component costs.
New Xbox prices
Microsoft has increased prices across almost its entire console lineup.
| Xbox Console | Old Price | New Price | Price Increase |
|---|---|---|---|
| Xbox Series S (512GB) | $399.99 | $499.99 | +$100 |
| Xbox Series S (1TB) | $449.99 | $599.99 | +$150 |
| Xbox Series X Digital (1TB) | $599.99 | $749.99 | +$150 |
| Xbox Series X (1TB Disc) | $649.99 | $799.99 | +$150 |
| Xbox 2TB Model | Available | Discontinued |
The company has also discontinued the 2TB Xbox model, meaning it will no longer be available as part of the official lineup.
Microsoft noted that memory and console storage prices have increased by more than 2.5 times over previous levels and expects those costs to rise further by the fall of 2027. It also pointed out that unlike smartphones or laptops, gaming consoles are generally sold with very small margins, and in some cases even below manufacturing cost.
Why prices are going up
According to Microsoft, the increase is part of a broader components shortage that continues to affect the technology industry. Growing demand for AI infrastructure has increased the need for advanced memory and storage chips, making them more expensive for hardware manufacturers.
The company had increased Xbox prices in the US last October as well, hoping another hike would not be necessary. However, after working with suppliers over the past several months, Microsoft says it had little choice but to revise pricing again.
The timing is also significant because GTA 6 is launching in November. The game is likely to drive demand for PlayStation 5 and Xbox Series X|S consoles, although there are concerns that hardware makers could struggle to meet demand if component shortages continue.
Microsoft highlights cheaper buying options
Alongside the announcement, Microsoft also spoke about ways to make Xbox consoles more affordable.
The company said eligible buyers purchasing through Microsoft Stores will have access to Buy Now, Pay Later options and interest-free financing in selected markets. Amazon customers will also be able to use financing offers on eligible purchases.
Microsoft is also expanding its trade-in and refurbished console programs. Players who no longer use their Xbox can trade it in through participating retail partners in exchange for cash or store credit. Those pre-owned consoles will then be resold at lower prices.
In addition, Microsoft Stores will continue offering Certified Refurbished Consoles at discounts of up to $100 compared to new models.
Xbox business faces fresh challenges
The latest price hike comes at a time when Microsoft's gaming business is going through major changes. Earlier this month, new Xbox CEO Asha Sharma said the industry may eventually need completely different business models because consoles are becoming increasingly expensive to build.
She also revealed that Microsoft's gaming business has seen its profitability come under pressure despite investing more than $20 billion in content, platform development and hardware subsidies over the past five years. Microsoft CEO Satya Nadella has also said the company now needs to build a more sustainable gaming business while continuing to invest in both hardware and games.
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