Microsoft Announces Xbox Price Increases and Discontinues 2TB Model
Quick Look
- Microsoft is increasing Xbox console prices worldwide starting August 1, with 512GB models up $100 and 1TB versions up $150, citing rising memory and storage costs.
- The company is also discontinuing its 2TB model.
AI-generated summary
Why It Matters
Microsoft is increasing Xbox console prices worldwide and discontinuing its 2TB model, citing rising component costs. This follows similar price hikes by Apple.
Just a few hours after Apple announced price increases across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting more expensive. In addition, the company announced that it’s discontinuing its 2TB model.
Starting August 1, Xbox console prices will increase worldwide. The 512GB models will cost $100 more, while the 1TB versions are set to rise by $150.
Price changes are as follows:
Xbox Series S 512GB is increasing from $399 to $499.
Xbox Series S 1TB is increasing from $449 to $599.
Xbox Series X 1TB Digital is increasing from $599 to $750.
Xbox Series X 1TB Disc is increasing from $649 to $800.
The company says the increases are being driven by rising memory and console storage prices, with costs more than 2.5x higher than previous levels. Microsoft warned that these prices could double by the fall of 2027. The move comes less than a year after the company raised Xbox prices in the U.S. last October.
The announcement follows Apple’s own round of price hikes affecting products such as Macs and iPads. Apple cited the same industry-wide pressures, pointing to soaring memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.
Together, the back-to-back announcements underscore how much the AI boom is impacting the price of everyday electronics. As technology companies invest heavily in larger AI systems, demand for advanced memory and storage chips has surged, tightening supply chains and pushing costs higher across the industry.
Microsoft attempted to soften the blow by highlighting financing options and plans to expand access to lower-cost hardware. In its announcement, the company said it is “working on new programs to provide previously played consoles at lower prices.”
Customers purchasing eligible Xbox hardware through Microsoft Stores will have greater access to buy now, pay later programs, while Amazon shoppers can qualify for up to 12 months of 0% APR financing on eligible purchases.
What to Watch
AI outlook — possibilities, not facts
Xbox prices could double by fall 2027.
Speculative · Within years
Open Questions
- Will other console manufacturers follow suit?
- How will this impact overall console sales?
