Microsoft raises Xbox console prices worldwide
Microsoft announced global price increases for Xbox consoles, citing memory and storage costs that have more than doubled, following a similar move by Apple.
Just hours after Apple announced price hikes across its product lineup, Microsoft revealed that Xbox consoles are also getting more expensive. The company also said it is discontinuing the 2TB model. Starting August 1, Xbox console prices will increase worldwide.
Prices for 512GB models will rise by $100, while 1TB versions will go up by $150. Specific changes: Xbox Series S 512GB from $399 to $499; Xbox Series S 1TB from $449 to $599; Xbox Series X 1TB Digital from $599 to $750; Xbox Series X 1TB Disc from $649 to $800.
The company cited rising memory and console storage costs, which have increased more than 2.5 times compared to previous levels. Microsoft warned that these prices could double by fall 2027. The move comes less than a year after the company raised Xbox prices in the U.S. last October.
This announcement follows Apple's own round of price increases affecting products like Macs and iPads. Apple pointed to the same industry pressures, namely soaring memory and storage costs driven by unprecedented demand for AI infrastructure and data centers. Together, the announcements highlight how the AI boom is impacting consumer electronics prices.
Microsoft tried to soften the blow by emphasizing financing options and plans to expand access to lower-cost hardware. The company said it is working on new programs to offer previously played consoles at lower prices. Customers buying eligible Xbox hardware through Microsoft Stores will have greater access to buy now, pay later programs, while Amazon shoppers can qualify for up to 12 months of 0% APR financing on eligible purchases.
Microsoft now joins Sony in asking gamers to pay more, as the PS5 digital edition now costs $599, up from $499 at launch. Meanwhile, Nintendo's price increase for the Switch 2 has been comparatively modest, but the rival may face pressure to raise prices further in the future.
