Microsoft hikes price of Xbox consoles for the third time in almost a year: Check how much they will cost and more details

Microsoft has announced another global price increase for its Xbox consoles. This marks the third price hike in almost a year. The revised prices will take effect from August 1, with 512GB Xbox models becoming $100 more expensive and 1TB variants increasing by $150. The company has also confirmed that it is discontinuing its 2TB Xbox console model.

The latest revision comes after Microsoft raised Xbox console prices by $20 to $70 in the US last October. Explaining the latest increase, the company said rising component costs, particularly for storage and memory, have made it difficult to keep console prices unchanged.


New Xbox console prices and why they are increasing

Starting August 1, Xbox Series S models with 512GB of storage will increase by $100, taking their price to about $500. Models with 1TB of storage will cost $150 more than before, while the entry-level Xbox Series X will start at around $750.

Announcing the change in a blog post, Microsoft said, "Last October, we increased the Xbox console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options."

The company added, "Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027."

Microsoft also explained the broader industry impact, saying, "The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."