Xbox Just Got a Lot More Expensive: Every New Price, Why It Is Happening, and What to Do Before August 1

Hardware: Xbox Series X|S  |  Manufacturer: Microsoft  |  Effective Date: August 1, 2026  |  Previous Hike: October 2025

Microsoft announced a third round of Xbox Series X|S price increases on June 25, 2026, effective August 1 worldwide. The Series X disc model rises from $649.99 to $799.99, and the Series S 512GB model rises from $399.99 to $499.99. Microsoft is also discontinuing the 2TB Xbox Series X Galaxy Black Edition entirely.

Every New Price From August 1

The official Xbox Wire announcement confirms the following US pricing effective August 1, 2026. All 512GB models rise by $100. All 1TB models rise by $150.

• Xbox Series S 512GB: $399.99 → $499.99 (+$100)
• Xbox Series S 1TB: $449.99 → $599.99 (+$150)
• Xbox Series X 1TB All-Digital: $599.99 → $749.99 (+$150)
• Xbox Series X 1TB Disc: $649.99 → $799.99 (+$150)
• Xbox Series X 2TB Galaxy Black Edition: Discontinued

UK and EU pricing adjusts proportionally. The Series X disc model now costs £699.99 in the UK. Microsoft confirmed the increases apply worldwide, with regional equivalents announced simultaneously.

Why Microsoft Is Raising Prices Again

Microsoft cited a severe and worsening shortage of memory and storage components as the direct cause. “Console storage and memory prices have increased by more than 2.5x,” the Xbox Wire statement reads, “and we expect another doubling by the fall of 2027.”

The official statement also notes that consoles are “typically not sold at a profit, but instead for less than they cost to make.” Unlike phones, computers, or smart speakers, console hardware economics depend on software and subscription revenue to recover the hardware loss. Consequently, component cost spikes hit console manufacturers harder than almost any other consumer electronics category.

Al Jazeera reported that the same chip shortage is simultaneously driving price increases across Apple’s hardware lineup. Analysts attribute the shortage directly to AI industry demand consuming DRAM and NAND flash supply at unprecedented rates, leaving the consumer electronics supply chain severely constrained.

This Is the Third Hike Since Launch

The Xbox Series X launched in November 2020 at $499.99. Microsoft held that price for four years before breaking the line in 2024. The full escalation from launch to today runs as follows:

• November 2020: Xbox Series X launches at $499.99
• 2024: First price increase, Series X rises to between $549.99 and $599.99 depending on model
• October 2025: Second increase, Series X disc model reaches $649.99
• August 1, 2026: Third increase, Series X disc model reaches $799.99

The Series S has followed a parallel path. It launched at $299.99, and the 512GB model now reaches $499.99 on August 1, a $200 increase since launch. Furthermore, the Series S 1TB hits $599.99, exceeding the original Series X launch price entirely.

The 2TB Discontinuation

Microsoft is ending the 2TB Xbox Series X Galaxy Black Edition permanently. The model currently retails at $699.99 in the US before it disappears entirely on August 1. No replacement or successor 2TB model is planned or announced at this time.

Additionally, this discontinuation removes Xbox’s highest-storage option from the market at the same moment the base storage price reaches $799.99. Players who wanted a premium storage option now face either a 1TB console at $799.99 or an external drive purchase on top of that. Microsoft did not address the storage gap in its official statement.

Microsoft’s Mitigation Programs

Microsoft announced four programs alongside the price increase to reduce the financial impact for buyers. None of them change the new prices, but they offer alternatives to a full upfront payment.

• Buy Now, Pay Later: Available through Microsoft Store for eligible hardware purchases, structured as short-term interest-free installments
• 0% APR Financing: Up to 12 months at 0% interest through Microsoft’s retail partners for eligible hardware
• Previously Played Consoles: Retail partners will accept trade-ins for cash or store credit, and those consoles will return to market at lower prices
• Xbox Certified Refurbished: Available now at Microsoft Store for up to $100 off MSRP

Microsoft also confirmed that Xbox Series S remains the entry point for playing the full 2026 lineup, specifically naming Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved, and Madden NFL 27.

What This Means for the Console Market

The Xbox Series X at $799.99 now sits $300 above the PS5 Standard Edition at $499.99 and $200 above the PS5 Pro at $599.99. Sony has not announced a price increase for any PlayStation 5 model at this time. However, Sony faces identical component pressures, and analysts do not expect that gap to hold indefinitely.

Furthermore, the $799.99 Series X sits just $250 below the Steam Machine’s $1,049 base price, a device that launched two days before Microsoft’s announcement. WCCFTech noted that the third Xbox hike places the Series S 1TB at $599.99, a price that would have bought a full Series X just two years ago.

The broader industry implication is significant. Microsoft warned publicly that another doubling of component costs is coming by fall 2027. No other console manufacturer has made a comparable forward statement. Consequently, this announcement is as much a warning about 2027 pricing across the entire market as it is a price change for Xbox today.

Conclusión

If you want an Xbox Series X and are willing to buy before August 1, the current $649.99 disc price is the last time this console costs under $700. After that, $799.99 is the floor, with no indication of where the ceiling lands in 2027. The Series S at $399.99 is the same argument on a smaller scale. Microsoft gave five weeks of notice. Use them or accept the new prices.