Xbox prices spike another $100 or more

Microsoft is increasing the prices of Xbox consoles again. Starting August 1st, 512GB models will be $100 more expensive, while 1TB models will be $150 more expensive. This means that the Xbox Series S will start at $499.99, the Xbox Series X without a disc drive will start at $749.99, and the Series X with a disc drive will start at $799.99. Microsoft also says it will be “sunsetting” its 2TB Xbox Series X.

Microsoft last raised prices in October by $20 to $70 and says it had hoped to avoid further hikes. “Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” Microsoft says in a blog post. “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.”

The company is also introducing new programs to try to make new Xboxes more affordable. That includes a buy now, pay later option and an interest-free financing option on Amazon. It also plans to work with retail partners to make “new programs to provide previously played consoles at lower prices.”

Microsoft initially launched the Xbox Series S at $299 and the Series X at $499 in November 2020. But in recent years, the company has had to raise console prices multiple times due to things like the component crisis — a situation that is forcing basically every technology company to raise prices, including Apple, which announced price hikes across its product lines earlier today.