
Xbox raises console prices for third time in 13 months, pushing Series X to $800
Microsoft is raising Xbox console prices by up to $150 worldwide, the third such increase in 13 months, as a global memory chip shortage drives up costs across the electronics industry.
New prices, same consoles
Microsoft will raise Xbox Series S and Series X prices from August 1. The 512GB Xbox Series S climbs $100 to $500; the 1TB version increases $150 to $600. The digital-only Xbox Series X 1TB rises $150 to $750, while the disc-drive Series X also jumps $150 to $800. The 2TB Galaxy Black edition is being discontinued. The company last raised prices in October 2025, adding $20 to $70.
- Xbox Series S 512GB
- 100 $
- Xbox Series S 1TB
- 150 $
- Xbox Series X Digital
- 150 $
- Xbox Series X
- 150 $
The memory cost squeeze
Xbox says console storage and memory prices have risen more than 2.5 times and may double again by fall 2027, driven by AI data centre demand. Samsung, SK Hynix and Micron have shifted production to high-bandwidth memory, leaving consumer electronics short. Apple raised Mac and iPad prices the same day, citing the same shortage. The console business model, selling hardware at a loss and recouping on games and services, collapses when component costs surge.
Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.
Rivals feel the same pain
Sony increased PlayStation 5 prices twice last year, and the PS5 Pro now costs $900. Nintendo and Valve have also raised prices. Valve's Steam Machine starts at $1,049 this week. The memory crunch affects all consumer devices; Apple killed its $600 Mac Mini earlier this year after DRAM prices jumped 90% in one quarter.
Financing and band-aids
To blunt the hike, Microsoft is rolling out interest-free instalment plans through its Store and Amazon, plus refurbished consoles at up to $100 off. The Xbox All Access subscription-hardware bundle is not returning. The company is also planning major layoffs and marketing budget cuts, Bloomberg reported.
What's ahead for Xbox
Xbox CEO Asha Sharma recently warned memory prices were becoming untenable, and chief strategist Matthew Ball said supply could be constrained by 30% to 40% into next year. The upcoming Project Helix console may face cost hurdles before it even launches. With prices now far above their 2020 debut, the Xbox is entering uncharted territory for a console this late in its cycle.
- Xbox Series X launches at $500
- First price increase: Series X rises to $600
- Second increase: Series X reaches $650
- Third increase: Series X jumps to $800; Series S up to $500/$600
