Xbox Is Increasing Console Prices For A Third Time

Every time we have to write that a console’s price is increasing it feels like “this has gotta be the last time, right?” Well, no, actually. Xbox has announced that it’s increasing the price of the Xbox consoles for a third time, and is also sunsetting the 2TB model.

Effective August 1, 2026, we will be updating prices worldwide. The price of XBOX consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models. We will also be sunsetting our 2 TB model.

The new price breakdown is as follows:

• Xbox Series X – 1TB w/ disc drive – $800 ($650)
• Xbox Series X – 1TB all digital – $750 ($600
• Xbox Series S – 512GB – $500 ($400)
• Xbox Series S – 1TB – $600 ($450)

In the Xbox Wire post, Microsoft cites the increase in prices for console storage and memory, which have increased “2.5x” since the last price increase in October, and the company expects it to double once more in the fall of 2027.

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.

Because of the price increase, Xbox is announcing a new “Buy Now, Pay Later” service that will allow people to buy Xbox systems through its own stores and break up payments in interest-free installments. Amazon is also offering up to 12-month financing with flexible monthly payments. The company also says it’s working with retailers to sell pre-owned systems, as well as certified refurbished systems on the Microsoft Store.

This is the third time Xbox systems have increased in price since 2025, with the first instance being in May of last year, with many speculating that President Trump’s then-newly-imposed tariffs were at the heart of the decision. The second time was in September of that same year, with Microsoft citing “changes in the macroeconomic environment” for the move. This increase made the 2TB model a whopping $800, but now that model has been discontinued.