Microsoft is raising the price of Xbox consoles again, and this time the jump is hard to ignore.
Starting August 1, 2026, Xbox console prices in the United States will increase across the board. According to Microsoft, the price hikes are tied to rising storage and memory costs, which the company says have more than doubled in recent years.
The new U.S. prices will be:
Xbox Series S 512GB: $499.99
Xbox Series S 1TB: $599.99
Xbox Series X Digital 1TB: $749.99
Xbox Series X 1TB: $799.99
Microsoft also confirmed that the 2TB Xbox Series X model will be discontinued.
For Xbox fans, this is going to be a hard sell. The Xbox Series X launched in 2020 at a much lower price, and seeing it move toward $800 this late in the console generation will likely frustrate players who were expecting discounts, bundles, or a price drop by now.
The Xbox Series S increase may be even harder to defend. The Series S was originally positioned as the affordable way into the Xbox ecosystem. At $499.99 for the 512GB model and $599.99 for the 1TB version, that value argument becomes much more complicated.
At these prices, some buyers may start comparing Xbox consoles against used hardware, handheld PCs, gaming PCs, or simply sticking with what they already own. For families and casual players, the higher price could make jumping into Xbox feel less appealing, especially when subscriptions like Game Pass are also part of the overall cost.
Microsoft says it will introduce financing options to help make the consoles more affordable. That may help some buyers with the upfront cost, but it does not change the total price of the hardware.
The discontinuation of the 2TB Xbox Series X also raises questions. Game file sizes continue to grow, and storage is already one of the biggest problems for modern console owners. Removing the largest storage model while raising prices on the remaining consoles could push more players toward external storage upgrades or used systems.
This also comes at an important time for Xbox. Microsoft has spent years emphasizing Game Pass, cloud gaming, PC support, and the idea of playing Xbox games across multiple devices. But if dedicated Xbox hardware keeps getting more expensive, some players may wonder whether buying a console is still the best way to be part of the Xbox ecosystem.
Microsoft may be pointing to storage and memory costs, but from the consumer side, the message is simple: buying an Xbox is about to get a lot more expensive.
Sources:
Microsoft Xbox Wire
https://news.xbox.com/en-us/2026/06/25/xbox-console-price-update/
Reuters
https://www.reuters.com/business/xbox-raise-console-prices-worldwide-august-2026-06-25/
The Verge
https://www.theverge.com/games/957042/xbox-price-increase-memory-shortage
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