Microsoft has announced another worldwide price increase for the Xbox Series X and Series S, citing the ongoing memory shortage crisis. From August 1, 2026, the 512GB model will rise by $100, and the 1TB consoles by $150. This marks a roughly 33% increase on some models, following similar moves by Sony and Nintendo over the past year.
New Pricing Details
In the United States, the 512GB Xbox Series S will cost $499.99, the 1TB Series S $599.99, the digital Xbox Series X $749.99, and the disc-based Xbox Series X $799.99. UK prices have not yet been confirmed, but based on current UK pricing—£299.99 for the 512GB Series S, £349.99 for the 1TB Series S, £449.99 for the digital Series X, and £499.99 for the disc version—increases of roughly £100 are expected.
Microsoft stated in a blog post, 'We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.'
Discontinuation and Buy Now, Pay Later
As part of the announcement, Microsoft confirmed it is 'sunsetting' the 2TB model of the Xbox Series X, likely due to high production costs. To mitigate the impact, Microsoft is introducing a 'buy now, pay later' scheme on Xbox hardware through Microsoft stores. However, given low sales volumes, the scheme is unlikely to have significant effect.
Microsoft has warned that further price increases are expected next year, as the component crisis continues. The company faces challenges with its next console, Project Helix, expected to launch in 2027, which will also be affected by high memory prices.
Impact on Sales and GTA 6
This price hike comes ahead of the highly anticipated launch of Grand Theft Auto 6 on November 19, 2026, which was expected to boost console sales. However, the increased prices may deter potential Xbox buyers, especially compared to the PlayStation 5. The component crisis could also impact hardware availability around the game's launch, with experts predicting the shortage to last at least five more years.
Microsoft previously cut the price of Xbox Game Pass after raising it by 50% last year, which led to a loss of millions of subscribers. The last console price hike occurred in October 2025 in the US, following a worldwide increase in May 2025.
