Xbox Raises Console Prices Amid Chip Cost Surge
Original: Xbox follows Apple with price increases
Why This Matters
AI infrastructure boom driving component shortages and price increases across consumer electronics industry globally.
Microsoft announced price increases for Xbox consoles starting August 1, with Series S models rising $100 and Series X models increasing by $150, citing memory and storage costs 2.5 times higher than previous levels.
Microsoft announced significant price increases for its Xbox console lineup effective August 1, 2026. The 512GB Xbox Series S will increase from $399 to $499, while the 1TB model rises from $449 to $599. The Xbox Series X Digital will jump from $599 to $750, and the Disc version will increase from $649 to $800. The company is discontinuing its 2TB model. Microsoft attributed the increases to rising memory and console storage costs, which have exceeded 2.5 times previous levels, with potential for prices to double by fall 2027. The announcement came hours after Apple revealed similar price hikes across its hardware lineup, also citing AI-driven demand for memory and storage chips. The move represents the second price increase in less than a year following October 2025 increases. To mitigate consumer impact, Microsoft highlighted financing options through Microsoft Stores and Amazon, including buy-now-pay-later programs and 12-month 0% APR financing. The company also announced plans for a program offering previously played consoles at lower prices. Sony's PS5 Digital has similarly risen from $499 to $599, while Nintendo's Switch 2 increase was comparatively modest.