Microsoft reveals another Xbox price hike is coming, the third increase since 2025

Jun 25, 2026 - 22:19

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Microsoft reveals another Xbox price hike is coming, the third increase since 2025

Published Jun 25, 2026, 1:17 PM EDT

Microsoft insists that Xbox Series X is one of the most affordable ways to play major franchises

If you want an Xbox and don't already own the console, now might be the time to pull the trigger. Microsoft's gaming division announced Thursday that beginning on Aug. 1 some Xbox models will become more expensive while others will be phased out altogether. It's the third price hike Xbox has implemented for its beleaguered gaming consoles since May 2025.

The price of Xbox consoles with 512 GB of storage will increase by $100, Microsoft says, while 1 TB models will go up by $150. Xbox will phase out the 2 TB Xbox Series X model in August as well.

The new Xbox console prices coming this August are as follows:

Xbox Series S 512 GB — $499.99 (was $399.99)
Xbox Series S 1TB — $599.99 (was $449.99)
Xbox Series X Digital — $749.99 (was $599.99)
Xbox Series X — $799.99 (was $649.99)

The Xbox Series X launched in 2020 for $499 alongside the cheaper, less powerful Xbox Series S for $299.

"We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options," says a blog post on Xbox Wire. "Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027."

Microsoft plans to launch new Xbox hardware this November to commemorate the brand's 25th anniversary.

News of rising Xbox console prices comes two months after Microsoft announced that its subscription service, Xbox Game Pass, would get a modest price decrease. At the time, Microsoft said that the previous higher price caused the company to lose millions of subscribers.

This latest price hike arrives just eight months after Microsoft increased prices for Xbox in October, and about a year after the console's initial price adjustment in May 2025. The company shared some ways that the console might become more accessible to potential customers in the future, like payment plans, used and refurbished consoles, and interest-free financing.

Microsoft isn't the only gaming hardware manufacturer raising prices. Valve hiked the price of the Steam Deck, charging an extra $240 to $300, depending on model, in May. Sony raised prices on PlayStation 5 consoles back in April, and Nintendo plans to increase the price of the Switch 2 in September. The price changes are a result of the global shortage of computer memory, which has driven up prices for RAM and storage.