Unfortunately Expected: XBOX Console Prices Increasing August 2026 as Microsoft Cites Rising Component Costs
Dave W. Shanahan 
Microsoft has officially confirmed a new round of XBOX console price increases set to take effect on August 1, 2026, impacting multiple models worldwide. The company says rising component costs—particularly storage and memory—are forcing the adjustment after months of trying to avoid another hike.
According to a new post on XBOX Wire, prices will increase by $100 for 512GB models and $150 for 1TB models, while the 2TB variant will be discontinued entirely. This marks another pricing shift following smaller increases in late 2025, signaling continued pressure on console manufacturing costs.
XBOX Console Prices Increasing August 2026
Microsoft explained that storage and memory prices have surged more than 2.5 times recently, with projections pointing to another doubling by late 2027. Unlike many other consumer electronics, consoles are typically sold at little to no profit, making them especially vulnerable to supply chain volatility and rising production expenses.
To help offset the impact for consumers, Microsoft is rolling out several new purchasing options aimed at making XBOX hardware more accessible. These include Buy Now, Pay Later plans through Microsoft Store purchases, as well as 0% APR financing for up to 12 months via Amazon on eligible devices.
In addition, Microsoft is expanding its focus on more affordable hardware options. This includes new “previously played” console programs through retail partners, allowing users to trade in older systems for credit while offering refurbished units at lower prices. Certified refurbished XBOX consoles are already available through Microsoft Stores, with discounts of up to $100 off retail pricing.
Despite the price increases, Microsoft is positioning the XBOX Series S as the most affordable entry point into its ecosystem, especially with a strong upcoming lineup that includes major titles like Grand Theft Auto VI, Gears of War: E-Day, and Call of Duty: Modern Warfare 4.
With hardware costs continuing to rise across the industry, this move reflects broader challenges facing console makers. For players considering a purchase, it may be worth acting before the new pricing takes effect in August.
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