Xbox raises console prices again & discontinues 2TB Series X

Microsoft has announced another worldwide price increase for Xbox consoles, marking the second major hardware price hike in less than a year as the company points to soaring component costs.

The new pricing takes effect on August 1, 2026, with 512GB Xbox consoles increasing by $100 and 1TB models rising by $150 worldwide. Microsoft also confirmed it is discontinuing its 2TB console model.

The latest increase comes after Microsoft raised Xbox console prices in the US by between $20 and $70 in October 2025. According to the company, it had hoped to avoid another increase but said rising storage and memory costs have made that impossible.

Microsoft says memory and storage costs have more than doubled

In its announcement, Microsoft said console storage and memory prices have increased by more than 2.5 times and are expected to double again by the fall of 2027.

“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles,” the company said.

Microsoft added that, unlike smartphones, computers, and many other consumer electronics, game consoles are typically sold below the cost of manufacturing, with companies making up the difference through software and services.

Microsoft

Alongside the price increases, Microsoft announced several new programs aimed at making Xbox hardware more affordable.

Players purchasing eligible Xbox hardware through Microsoft Stores will be able to use expanded Buy Now, Pay Later options with interest-free installments. Amazon customers will also have access to 0% APR financing for up to 12 months on eligible hardware purchases.

Microsoft is also introducing previously played console programs with retail partners, allowing customers to trade in their existing Xbox consoles for cash or store credit. Those systems will then be resold at lower prices.

The company also highlighted its Xbox Certified Refurbished Consoles, which are available through Microsoft Stores for up to $100 below MSRP.

The announcement comes just one day after Rockstar confirmed GTA 6 will launch at $79.99 for the Standard Edition and $99.99 for the Ultimate Edition, with pre-orders now live ahead of the game’s November release. Now, the higher Xbox hardware prices mean players looking to buy both a new console and Rockstar’s blockbuster will be paying even more to jump into one of the year’s biggest releases