Microsoft Raises Xbox Console Prices by Up to $150 and Ends 2TB Models

Microsoft is increasing Xbox console prices in the United States from August 1, with some models rising by as much as $150. The company says higher memory and storage costs are behind the decision, while all Xbox consoles with 2TB of storage will be discontinued.

The price changes affect every Xbox Series X and Series S storage tier. Models with 512GB of storage will cost $100 more, while 1TB versions will receive a $150 increase. Microsoft has not listed replacement 2TB models, meaning buyers who want more built in storage may need to rely on expansion cards or external storage options.

The changes arrive as the wider consumer electronics industry faces increasing costs for memory and storage components. Microsoft says these parts have become more than 2.5 times more expensive since its previous Xbox price adjustment and could continue rising into 2027.

Xbox Consoles Will Become More Expensive From August 1

Microsoft has not said that hardware features are changing alongside the price increase. The same Xbox Series X and Series S models will remain available, but their price tags will be higher because of component costs.

The company argues that consoles are particularly exposed to supply pressure because they are usually sold with low profit margins. Unlike phones, laptops, and many other consumer products, console makers often depend on game sales, subscriptions, accessories, and digital store spending to make money after the initial hardware sale.

The decision could make the Xbox Series X harder to recommend for buyers who have been waiting for a price drop. It also makes the end of the 2TB version notable, as modern games continue to demand more space and players increasingly need large internal storage capacity.

Microsoft Is Offering Financing and Refurbished Alternatives

Microsoft says it is introducing or expanding several ways for buyers to reduce the immediate cost of an Xbox console.

Eligible hardware purchases through Microsoft Store can use buy now, pay later options, allowing the total cost to be split into shorter interest free payments. Amazon buyers may also be able to access 0% APR financing for up to 12 months on eligible Xbox hardware.

The company is also working with retail partners on trade in programs. Players who no longer use their current console may be able to exchange it for cash or store credit, while those traded in systems could later be sold as lower cost used options.

Certified Refurbished Xbox consoles are already available through Microsoft Store for up to $100 below their usual retail price.

Higher Component Costs Could Affect Console Prices for Years

Memory and storage shortages are becoming a growing concern for gaming hardware. Microsoft expects costs for these components to continue rising and says some prices could double again by fall 2027.

That creates a difficult situation for console makers. Hardware prices have traditionally fallen over time as manufacturing becomes cheaper, but recent supply conditions are pushing in the opposite direction.

Microsoft’s move follows a similar PlayStation price increase earlier this year, showing that the pressure is affecting both major console platforms.

For Xbox buyers, the key date is August 1. Anyone considering a new Xbox Series X or Series S may want to check current pricing before the increases take effect, especially if they are interested in a 2TB model before it disappears from stores.