Xbox consoles just got a lot more expensive and Microsoft says it may get worse
Anyone in the market for an Xbox is in for yet another shock. Starting August 1, all Xbox consoles will be more expensive worldwide. In an attempt to minimise the damage, Microsoft has refused to explicitly state the new prices of its consoles. Here’s a model-by-model breakdown:
- Xbox Series S 512 GB: $499 from $399 ($100 price increase)
- Xbox Series S 1 TB: $599 from $449 ($150 price increase)
- Xbox Series X 1 TB Digital: $749 from $599 ($150 price increase)
- Xbox Series X 1 TB with Disk Drive: $799 from $649 ($150 price increase)
If that weren't bad enough, the 2 TB Xbox Series X variant has been cancelled outright. Initially shown off in June 2026 alongside the all-digital Series X and 1 TB Series S, the console lasted two years before being axed, with slim to no chances of a comeback. $499 is now the minimum one has to pay to enter the Xbox console ecosystem with a Series S, which is ironic, considering that the same amount could get you a much more powerful Series X console at launch.
As foretold by an earlier leak, Microsoft will offer ‘Buy Now, Pay Later’ options to eligible users, allowing one to lessen the blow of buying what is essentially six-year-old hardware. Similarly, people purchasing Xbox consoles via Amazon can take advantage of 0% APR financing options for up to 12 months. Of course, these offers will only apply to specific markets and might not be available globally. Lastly, Microsoft will also sell refurbished consoles on its store with a $100 discount.
It only gets worse from here
Microsoft's blog post explicitly states, "Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027", meaning we could see yet another price hike next year. This could very well be the industry prepping gamers for a $1,000 price tag on next-gen consoles, something that was foretold after the memory/storage crisis hit.
The announcement's timing is puzzling, as it comes shortly after GTA 6 pre-orders opened up and a few hours after Apple announced its massive portfolio-wide price hike. If the pattern holds, it might not be long before Sony and others follow suit. At this rate, it is only a matter of time before Valve's somewhat ludicrous Steam Machine pricing looks sane in comparison.
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