Microsoft raised Xbox console prices worldwide on August 1, the third increase in roughly 15 months, and discontinued the 2TB Series X. The company blamed memory and storage costs rising more than 2.5x, and said it expects them to double again by fall 2027.
Console prices are supposed to fall as a generation matures. That held for about four decades. It does not hold now.
Microsoft raised prices on every current Xbox console worldwide on August 1, 2026. Models with 512GB went up $100. Models with 1TB went up $150. The 2TB Series X was discontinued outright.
It is the third Xbox price increase in roughly 15 months.
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What every Xbox console costs now
The full US lineup after the increase:
Xbox Series S (512GB) — $499.99
Xbox Series S (1TB) — $599.99
Xbox Series X (1TB digital) — $749.99, up from $599.99
Xbox Series X (1TB disc drive) — $799.99, up from $649.99
Xbox Series X (2TB Galaxy Black) — discontinued
Two comparisons put that in context. A 1TB Series S now costs the same as a digital PlayStation 5. And the Series S 512GB is closing on the price of a Switch 2, which has its own increase scheduled later this year.
Why Microsoft says prices went up
The company was unusually specific, and it did not reach for tariffs or general inflation this time.
“Console storage and memory prices have increased by more than 2.5x,” Xbox said in its announcement, “and we expect another doubling by the fall of 2027.”
It also acknowledged the earlier increase, noting prices went up $20 to $70 in the US last October and that the company had spent months working with suppliers looking for alternatives. Its framing was that the whole consumer electronics industry is dealing with a components crisis, and that consoles are hit particularly hard.
Microsoft paired the increase with financing programs intended to make the consoles more accessible.
The memory shortage behind it
The cause traces back to something that has nothing to do with games.
Global DRAM demand surged in late 2025 as AI data centers scaled up, and large technology companies began buying memory in quantities that left less available for consumer hardware. Console makers are competing for the same components as AI infrastructure, and losing.
The effects are visible across the market. Sony lifted the PS5 to $649. Graphics card prices have climbed toward extraordinary numbers. Handheld makers have hiked prices or exited the category entirely. AMD’s most recent quarter showed gaming revenue down 31%, with the company citing higher component costs hitting graphics card demand.
Every major console manufacturer has now either raised prices or announced plans to.
The line that matters most
The immediate numbers are the story today. The forecast is the story for next year.
Microsoft did not say memory costs were high. It said it expects them to double again by fall 2027. If that holds, the $799.99 Series X is not the ceiling for this generation. It is a waypoint.
That lands awkwardly against the calendar. GTA 6 arrives November 19 at $79.99, which is exactly the kind of release that historically drives console upgrades. Buyers now face a more expensive console, one fewer storage option, and a company openly forecasting further increases.
For a generation that was supposed to get cheaper, this one keeps finding new ways to cost more.
Article compiled and edited by Derek Gibbs (entertainment editor) and the Clownfish TV newsroom.
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Hat Tips:
Xbox Wire (June 25, 2026), verified as the primary source for the August 1 worldwide effective date, the $100 and $150 increases by storage tier, the 2TB sunset, the “more than 2.5x” memory and storage cost figure, the expectation of another doubling by fall 2027, and the reference to last October’s $20 to $70 increase
Variety (June 25, 2026), verified for the full US pricing across every model, the 2TB model having been the highest-priced current-generation Xbox, and the quoted announcement text
WCCFTech (June 25, 2026), verified for this being the third increase in 15 months, the accessibility programs announced alongside it, the Series S 1TB matching the digital PS5 price, and both Series X models remaining below the PS5 Pro
GamingHQ (August 2026), verified for the DRAM shortage originating in late 2025 with AI server demand, the distinction from prior tariff-driven increases, the end of 2TB production, the scheduled Switch 2 increase, and the reversal of the historical pattern of falling console prices