Microsoft to lift Xbox prices globally

Microsoft (MSFT) announced on June 25, 2026 that it will raise prices on Xbox consoles worldwide, with the changes taking effect on August 1, 2026. The increase applies across 512 GB and 1 TB models, marking another adjustment to console pricing within a relatively short period.

Under the new structure, 512 GB Xbox models will see a US$100 price increase, while 1 TB models will rise by US$150. These changes will apply globally, with specific U.S. price points detailed for several configurations.

Published pricing tables show that in the United States, the Xbox Series S 512 GB will start at about US$499.99 after the increase. The 1 TB version of the Series S is expected to start at roughly US$599.99 under the updated pricing.

For the Xbox Series X line, the 1 TB digital model is shown with a new starting price of about US$749.99, while the 1 TB disc model is listed at around US$799.99. These figures outline the post‑increase landscape for the main Xbox console variants sold at retail.

Alongside the price increases, Microsoft stated that it will begin to phase out, or “sunset,” the 2 TB Xbox model starting with the August 1, 2026 pricing update. Once this process is complete, the 2 TB configuration will no longer be part of the standard Xbox console lineup.

The move refocuses the range on 512 GB and 1 TB storage tiers at the higher price points, aligning the product portfolio with the cost dynamics Microsoft is highlighting in its explanation of the changes.

Microsoft cited sharply higher component costs, particularly for storage and memory, as the main reason for the price increases. The company said these costs have risen by more than 2.5 times since the last Xbox price change.

Looking ahead, Microsoft indicated that it expects storage and memory costs to double again by the fall of 2027. This cost outlook underpins the decision to raise prices now and to adjust the available configurations in its console lineup.

To help mitigate the impact on buyers, Microsoft is expanding payment and access programs for Xbox consoles. It is rolling out Buy Now, Pay Later options through Microsoft Stores and working with retailers to expand certified refurbished and pre‑owned console offerings.

Some reports also point to interest‑free financing offers available through Amazon (AMZN) as part of the broader effort to keep Xbox hardware accessible at higher price points. These initiatives are positioned as ways for consumers to manage the higher upfront costs over time.

Several news outlets have described this announcement as the third Xbox console price increase in roughly 13 months, referencing earlier adjustments in 2025 and October 2025. Another report has framed it as the second price increase in the past 12 months, underscoring differing ways of counting the changes.

While interpretations vary, the latest decision confirms a pattern of rising Xbox hardware prices over the past year-plus, driven by component cost pressure and resulting in higher entry points for current‑generation consoles.