Microsoft says it will increase the prices of Xbox consoles on August 1 by $100 for 512GB models and $150 for 1TB models, the third price hike since May 2025

Microsoft is increasing the prices of Xbox Series consoles once more and introducing a ‘Buy Now, Pay Later’ option

Kotaku 2026-06-26 Kenneth Shepard

Context & Ripple Effects

Microsoft’s latest console increase extends a sequence that began with global Series S and X, controller, and game price rises in 2025. Related coverage also points to higher Series X pricing and a more expensive Xbox Development Kit, indicating that the pressure is reaching both consumers and developers.

At the same time, Microsoft is widening access to Xbox Cloud Gaming beyond the highest Game Pass tier and testing broader PC-game availability. The addition of Buy Now, Pay Later sits alongside that effort to preserve access as upfront hardware costs rise.

First-order effects

Buyers of 512GB and 1TB Xbox models face materially higher August purchase prices, while Microsoft offers installment financing to reduce the immediate cash outlay.
Microsoft lifts the revenue per console sale again and further separates the economics of buying Xbox hardware from accessing Xbox services through Game Pass and cloud gaming.

Second-order effects

Higher hardware prices can push price-sensitive customers toward financing, lower-cost access paths such as Game Pass tiers with cloud gaming, or delaying a console purchase.
Developers targeting Xbox face a costlier official development kit alongside a more expensive consumer hardware base, raising the importance of Microsoft’s cloud and cross-PC distribution options.

Third-order effects

If repeated hardware increases persist while cloud access expands, Xbox’s center of gravity may shift further from subsidized console adoption toward recurring subscriptions, financing, and software access across devices.
The pattern could make console pricing less of a fixed platform entry point and more of a variable lever, with ecosystem reach increasingly determined by service tiers and cloud availability rather than hardware ownership alone.

The trend: Xbox is increasingly pairing higher console prices with broader cloud and subscription access, signaling a platform strategy less dependent on keeping dedicated hardware inexpensive.

Discussion

XBOX Wire XBOX Wire on x
Updated XBOX Console Prices
@zhugeex Daniel Ahmad on x
The most important part of the announcement: “Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.”
@yongyea Yong Yea on x
Xbox price increase in a nutshell [image]
@paultassi Paul Tassi on x
You gotta be kidding me. Prices so high they don't even say them out loud and the 2TB model got so expensive they discontinued it entirely
@niktek @niktek on x
How can Xbox possibly justify Xbox Series X costing $799 when this console is a direct competitor to the PlayStation 5. Both consoles have launched with the price tag of $499 As of right now, a PS5 disc costs $649 and the Xbox Series X is $799
@kalaelizabeth Kala Elizabeth on x
Asha saying that gaming has become “too expensive for gamers” literally yesterday and then raising Xbox prices today lol
@vicious696 Parris on x
This is unaffordable and I sympathize with anyone looking to buy a gaming console in this economy Delay Project Helix and PlayStation 6 indefinitely, no one can afford this Focus on the hardware that we already own because this aint it
@shizukougames @shizukougames on x
with the way things are going, don't be afraid to look back at older consoles and games! there are thousands of incredible games waiting to be played that you've probably never touched
@synthpotato @synthpotato on x
Begging you all to treat all your tech & gaming consoles with extra care for the next few years. The prices will continue to increase and some predictions have it at x5 soon, meaning we could very well be looking at base PS5 and Xbox Series X costing $1500+ in a couple of years […
@selacogame @selacogame on x
“Gaming is becoming unaffordable” - Xbox CEO Asha Sharma We got you! Selaco is now 30% off and all post-launch content will forever be free. [image]
@ghillieyt Nick on x
Something HAS to change in the next few years man. These console prices are NOT AT ALL sustainable. If the PS6 and next Xbox are over $1000 then the consoles wont sell, and the games wont sell because of the inability to sell the console needed to play said games. The whole
@tomwarren Tom Warren on x
Microsoft is hiking the price of its Xbox consoles by $100 or more. The discless Xbox Series X will start at $749.99, while the disc drive version is $799.99. Overall, 512GB models will be $100 more expensive, while 1TB models will be $150 more expensive https://www.theverge.com/…
@grummz @grummz on x
Xbox skyrockets price increases. 2tb discontinued (would look too expensive) $100 more foe 512 and $150 more for 1TB. You're looking at 800-900 bucks now to get the best console from Xbox or Sony. This is all due to component shortages and RAM maker monopoly bleeding everyone [im…
@wario64 @wario64 on x
“Effective August 1, 2026, the price of XBOX consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models. We will be updating prices worldwide. We will also be sunsetting our 2 TB model.” https://news.xbox.com/... [image]
@zerohedge @zerohedge on x
MSFT LOD. The wealth transfer from debt-issuing hyperscalers to commodity chip maker continues.
@ocornut Omar on x
People saying “AI is a multiplier” are rightfully vindicated, it's definitively a RAM price multiplier!
@r89capital Rex on x
AI so far is basically everything getting more expensive with zero benefit to average people's lives They get a fancier google search and poverty lol
@genepark Gene Park on x
if old ass tech goes up in price now, why can't i sell my blackberry for $10,000
@jezcorden Jez on x
Will PS5 join Xbox in raising prices here, or twist the knife in tandem with their massive GTA6 marketing deal? Generational op to lock in a gen of gamers trying GTA for the first time? Could be worth. MSFT CFO only sees short term, remember. Huge weakness PS5 can exploit.
@stallion83 @stallion83 on x
The biggest release in gaming, GTA VI, finally opens pre-orders and Xbox decides today is the day for a console price hike. What are we doing.
@septic_sauce Gaz on x
Xbox is doing better marketing for the PS5 Pro than Sony is
@mrpyo1 @mrpyo1 on x
The PS6 and next XBOX should get delayed until 2030 at this point Legit no reason whatsoever to launch in 2027 of all years 💀 [image]
@mooreslawisdead @mooreslawisdead on x
A word on the XBOX price increase - blame those stupid little SSDs they insisted on using...just like Steam Machine did... Multiple sources have confirmed this. Those SSDs have had massive price increases, and GDDR6 has NOT seen the same increases GDDR7 & LPDDR5X have seen.🤦 [ima…
@klobrille @klobrille on x
In hindsight, Xbox Series S at $299 looks like the best deal for a console launch ever; a device that'll play Gears of War: E-Day, Grand Theft Auto VI or Fable. It's kind of crazy how far we've drifted from these price points today. [image]
@justfrostbyte Frost on x
Insane how Sam Altman destroyed the entire tech industry for the foreseeable future. These prices are just ridiculous. Our salaries don't increase at the same pace these guys raise prices
@centroleaks @centroleaks on x
Xbox has announced the start of the third cycle of console price increases. So far PlayStation has done two increases to PS5, Nintendo only one. It's likely in the coming months/next year we will also see another price increase for both PlayStation and Nintendo. [image]
@rayrobertson.uk Ray Robertson on bluesky
In a statement a Microsoft representative, inexplicably dressed as a hot dog, said: — “We're all trying to find the guy who did this.” — (A text based meme as memory is too expensive for images) [embedded post]
@zachbussey.tos.gg Zach Bussey on bluesky
Important for creators to see this line: — “Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027.” — More details: news.xbox.com/en-us/2026/0...
@futterish.fsquared.biz Mike Futter on bluesky
$750 for an Xbox Series X. Good luck, I guess. — news.xbox.com/en-us/2026/0...
r/GearsOfWar r on reddit
For those of you wanting an Xbox before E-Day releases
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Xbox once again raises console prices
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r/TwoBestFriendsPlay r on reddit
Another day, another console price hike.
r/gamesEcultura r on reddit
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Xbox console prices going up $100/$150
r/videogames r on reddit
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r/VideoGameDealsCanada r on reddit
[XBOX] Updated XBOX Console Prices (Effective August 1, 2026, the price of XBOX consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models)
r/xbox r on reddit
Updated XBOX Console Prices - XBOX Wire
r/Games r on reddit
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Gameranx Ryan Parreno on x
XBOX Series X 2 TB To Be Discontinued And All Other XBOX Series X|S Models Getting Price Hike Because Of Supply Crisis

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