Microsoft’s XBOX gaming console brand announced that it will increase console prices worldwide starting August 1, 2026, according to an official company statement. The price of 512 GB XBOX console models will go up by $100. The price of 1 TB XBOX console models will increase by $150. XBOX is also discontinuing its 2 TB console model.
This is not the first price increase. XBOX had already raised console prices in the United States by $20 to $70 in October 2025. XBOX said it had hoped to avoid another round of price hikes and spent several months working with suppliers to find other solutions. However, the company said the cost of important console parts, especially storage and memory components, has risen sharply. According to XBOX, storage and memory prices have increased by more than 2.5 times compared with previous levels.
The company also expects those component prices to double again by fall 2027. XBOX said the entire consumer electronics industry is facing a major components crisis. According to the company, rising component costs are affecting makers of phones, computers, speakers, and other electronic devices. XBOX said the impact is especially severe for gaming consoles.
The company explained that consoles are usually sold at little profit or even below manufacturing cost, unlike many other electronics products. Because of that business model, higher component prices make it harder for console makers to absorb extra costs, according to XBOX.
New Programs Announced To Help Buyers
Alongside the price increase, XBOX announced several programs aimed at making consoles more affordable. The company is expanding Buy Now, Pay Later options for eligible XBOX hardware purchases through Microsoft Stores. According to XBOX, this will allow customers to split payments into smaller, short-term installments.
XBOX said these installment payments will be interest-free for eligible purchases. The company also announced a new financing option for eligible XBOX hardware bought through Amazon. Buyers will be able to use 0% APR financing for up to 12 months. XBOX said this financing option is designed to lower monthly payments and give customers more budgeting flexibility.
Also read: Apple hikes prices by up to 42%: Check full price list for MacBooks, iPads, Vision Pro and HomePod devices
Trade-In And Refurbished Console Plans
XBOX said it is working with retail partners on programs to sell previously played consoles at lower prices. Under the program, players who want to upgrade or no longer use their consoles can trade them in at participating retailers. Customers will receive either cash or store credit for eligible trade-ins.
The traded-in consoles will then be resold to other customers at lower prices. XBOX also highlighted its Certified Refurbished Console program. According to the company, certified refurbished XBOX consoles are available through Microsoft Stores. These refurbished consoles can be sold for up to $100 less than the manufacturer’s suggested retail price (MSRP). Despite the price increases, XBOX said the XBOX Series S remains its lowest-cost console option.
