Xbox prices are going up yet again

New Xbox Series console price increases have been announced, with Microsoft confirming that both the Xbox Series X and Series S will become more expensive from the 1st of August. In an update shared via the Xbox Wire, the company cites rising component costs as the primary reason for the latest hike. According to Microsoft, memory and storage prices have already surged significantly this year and are expected to double again by Autumn 2027. 

Xbox Series S 512GB will rise from $399 to $499, the Series S 1TB will go from $449 to $599, the Xbox Series X 1TB (disc) will increase from $649 to $800 and the Xbox Series X 1TB Digital will move from $599 to $750, with the 2TB model being discontinued.

This follows our reporting yesterday that next‑generation consoles could realistically launch at around the $1000 mark, given the current trajectory of component pricing. With Xbox Series hardware already struggling at retail, the timing of another price increase is far from ideal. Games industry analyst Matt Piscatella shared updated sales data showing that Xbox hardware sales continued to decline throughout May, and with higher prices now locked in for August, it seems likely that this downward trend will continue.

To soften the blow, Microsoft is reintroducing a ‘pay later’ option for Xbox consoles — something the company has experimented with in the past through subscription bundles. The new scheme allows customers to spread the cost of a console over time, rather than paying the full amount upfront.

KitGuru Says: With component prices continuing to rise, it seems unlikely that this will be the last price adjustment we see before the next generation arrives.

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