Xbox Series X and Series S Prices Will Rise Again as Memory and Storage Costs Surge

Microsoft will raise Xbox Series X and Xbox Series S prices again on August 1, 2026, blaming a sharp increase in memory and storage costs. The latest changes will add between $100 and $150 to the remaining console models, while the 2TB Xbox Series X Galaxy Black Edition will be discontinued.

The new prices make Xbox hardware significantly more expensive than it was only a year ago. Microsoft says console storage and memory costs have risen by more than 2.5 times and could double again by autumn 2027. That pressure is affecting the wider consumer electronics industry, but consoles are particularly exposed because they are often sold with very small profit margins.

The company is also introducing payment plans, financing options, refurbished hardware, and more used console availability to reduce the upfront cost for buyers.

New Xbox Series X and Series S Prices Start August 1

The increase affects every remaining Xbox Series model in the United States. The Series X models will rise by $150, while the entry level Series S will increase by $100.

The move means that the 1TB Xbox Series S will cost the same as a digital PlayStation 5 in some markets. The standard Xbox Series X models will remain below the price of the PS5 Pro, but the gap between console pricing and high end PC hardware is becoming smaller.

Microsoft had already raised Xbox console prices in the United States in late 2025. This will be the third increase in around 15 months, making the current generation much more expensive than many people expected when it began.

Microsoft Blames the Global Component Crisis

Microsoft says the price increase is linked to rising costs for storage and memory. These components are essential for consoles because modern games need large SSDs, fast memory, and more powerful hardware to support high resolution visuals and larger game worlds.

The company says it spent recent months working with suppliers to avoid another increase, but the cost pressure became too difficult to absorb. Microsoft also warned that prices may continue rising because it expects memory and storage costs to increase further before autumn 2027.

This is not only an Xbox problem. PC makers, phone companies, console manufacturers, and other electronics brands are facing higher costs for important components. However, gaming consoles face a different challenge because they have historically been sold at or below manufacturing cost, with companies earning more through game sales, subscriptions, accessories, and online services.

New Payment Options Aim to Make Xbox Hardware Easier to Buy

Microsoft is introducing several programs for people who cannot or do not want to pay the full price at once. A new Buy Now, Pay Later option through Microsoft Store will allow console purchases to be divided into short term interest free payments.

Amazon buyers will also be able to use financing plans with 0% APR for up to 12 months. Microsoft says it will work with retail partners to increase the availability of used consoles, while certified refurbished systems will be sold at $100 below the suggested retail price.

These options may help reduce the immediate financial burden, but they do not change the overall direction of console pricing. A Series S that once served as a lower cost entry point is now moving much closer to the price of a premium gaming device.

The latest Xbox increase shows how quickly hardware pricing has changed. Microsoft is trying to provide more ways to buy a console, but the larger problem remains unresolved: the components inside modern gaming systems are becoming far more expensive, and there is no clear sign that prices will fall soon.