Assessing the Impact: The Consequences of Microsoft’s Recent Xbox Price Increase

Summary

• Microsoft is set to increase XBOX console prices effective August 1, 2026.
• The cost of the 512GB models will rise by $100, while 1TB models will see a $150 increase.
• The company will also phase out the 2TB models.

Despite earlier predictions that the Steam Machine would come with a hefty price, many were still caught off guard when Valve revealed the final cost. The ongoing chip shortage largely influenced this decision, affecting all major console manufacturers, including Nintendo, Sony, and Microsoft, who are gradually raising their prices. The latest news brings another price increase for the XBOX series.

Microsoft has announced a global price adjustment for the XBOX Series X and Series S starting on August 1, 2026. Specifically, the price for the 512GB models will increase by $100, while those for the 1TB models will go up by $150. Additionally, the company plans to discontinue the 2TB option.

Here are the updated prices in the U.S. effective from early August:

Similar to the situation faced by Valve, Microsoft cited rising storage and memory costs as a key reason for the price increase. The company reported that the expenses for console memory and storage have surged by over 2.5 times, with expectations of another doubling by fall 2027. If these projections hold true, additional price hikes may occur in the coming years.

This is now the third price increase for the XBOX since 2025, following adjustments made in May and again in October of that year.