Microsoft Announces Global Xbox Series X|S Price Hike Starting August 1 — 512GB Up $100, 2TB Model Discontinued

Microsoft has officially announced a global price increase for the Xbox Series X|S lineup, effective August 1, 2026, alongside the discontinuation of the 2TB storage variant.

Under the new pricing structure, the 512GB model will see a $100 increase (approximately ¥682), while the 1TB variant jumps $150 (approximately ¥1,023). After the adjustment, the disc-based Xbox Series X 1TB will retail for $799.99, the digital Xbox Series X 1TB for $749.99, and the Xbox Series S 1TB and 512GB versions will rise to $549.99 and $499.99, respectively.

This marks the second price hike for the Xbox console family within a single year. In its announcement, Microsoft acknowledged that it had hoped the October 2025 price increase would be the last, but months of negotiations with suppliers failed to reverse the trend.

Xbox CEO Asha Sharma previously explained in an interview that the global AI infrastructure buildout has created unusual pricing pressure across consumer electronics components. Console storage and memory prices have surged more than 2.5 times, with projections indicating they could double again by fall 2027. When Sharma took office in February, storage component costs were already double what they had been the previous fall — and they’ve since doubled once more.

The entire consumer electronics industry is grappling with this component crisis, but gaming consoles are hit especially hard. Unlike smartphones and PCs, consoles are typically sold below manufacturing cost, as hardware is not the primary profit driver.

To help players weather the price storm, Microsoft is rolling out several mitigation measures. Players can use a “buy now, pay later” option through the Microsoft Store, splitting payments into short-term interest-free installments. Purchases of eligible Xbox hardware through Amazon can also qualify for up to 12 months of interest-free financing.

Microsoft is also partnering with retailers to launch a used console program, allowing players to trade in old devices at participating stores, which will then resell them at lower prices. Additionally, officially certified refurbished consoles are now available on the Microsoft Store, offering savings of up to $100.

Microsoft emphasized that the Xbox Series S remains the most affordable way for console gamers to play this year’s biggest titles, including Assassin’s Creed IV: Black Flag — Memory Reset, Call of Duty: Modern Warfare IV, Gears of War: E-Day, Grand Theft Auto VI, and Halo: Combat Evolved.