Xbox is raising prices again, and this time the jump is significant. Starting August 1, 2026, Microsoft is increasing the cost of Xbox consoles by $100 for 512GB models and $150 for 1TB models. The 2TB Xbox Series X is also being discontinued entirely.
This news dropped yesterday via an official Xbox Wire post, and players are already frustrated.
Here’s What the New Prices Look Like
If you were thinking about picking up an Xbox, you’ll want to act fast.
The Xbox Series X 1TB Digital Edition moves up to $749.99. The disc version goes to $799.99. And the Xbox Series S 512GB model, which launched at just $299 back in 2020, is now going to cost $499.99.
That’s a $200 jump from launch for the budget console. The Series X disc model is now $300 more expensive than its original price.
Also read: GTA 6 Won’t Have GTA Online at Launch, PlayStation Store Suggests
Why Is This Happening?
Microsoft says console storage and memory prices have gone up by more than 2.5x, with another doubling expected by fall 2027.
In their official statement, they put it plainly: “The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
That’s the core problem. Console makers rely on game sales, subscriptions, and accessories to recover hardware costs. When memory prices spike this hard, there’s very little room to absorb it.
And for what it’s worth, they tried. Microsoft says they spent months working with suppliers before concluding another price hike was unavoidable.
This Is the Third Price Increase Since 2025
This isn’t the first time Xbox has raised prices recently.
Last October, Microsoft increased U.S. prices by $20 to $70 depending on the model. Before that, the first hike came in May 2025, widely tied to tariff pressure. Microsoft said at the time they hoped it would be enough.
It wasn’t. This third increase is by far the largest, and it landed just one day after GTA 6 pre-orders went live. Timing, right?
Microsoft Is Trying to Soften the Blow
To their credit, Microsoft is rolling out four programs to make things easier on buyers:
Buy Now, Pay Later lets you break up the cost of eligible Xbox hardware into short-term, interest-free installments through Microsoft Stores.
Interest-Free Financing is available through select partners at 0% APR for up to 12 months, giving you more control over monthly spending.
Previously Played Consoles is a new trade-in program being set up with retail partners. Players can hand in their old console for cash or store credit, and those systems get resold at lower prices to other buyers.
Xbox Certified Refurbished Consoles are already available at Microsoft Stores for up to $100 off MSRP, and that option remains on the table after August 1.
Also read: GTA 6 Secretly Honors Tommy Vercetti, But There’s a Catch
What Games Can You Still Play on Xbox Series S?
Despite the price hikes, Microsoft is pointing to the Xbox Series S as the most affordable entry point into the ecosystem. And the 2026 lineup is genuinely stacked.
Series S players will get access to 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, all on the cheaper hardware.
That’s a solid list, no question. Whether it justifies $499.99 is another conversation.
Should You Buy Now?
The window to save is closing. Buying before August 1 gets you $100 to $150 off depending on the model. After that, your best options are the certified refurbished program, trade-in deals, or waiting to see what holiday bundles look like later this year.
It’s a rough stretch for Xbox fans, especially with GTA 6 around the corner pushing a lot of people toward console upgrades right now.
Are you grabbing an Xbox before the price goes up, or waiting it out? Let us know in the comments. And if you know someone who’s been sitting on the fence about buying one, share this with them before August 1.
