Microsoft has increased the price of Xbox consoles by as much as $150.

      Microsoft Stores will provide a "buy now, pay later" option with zero interest, and a similar 12-month financing plan will be available through Amazon.

      Microsoft has recently declared an increase in the prices of Xbox consoles in the U.S. amid an unprecedented crisis in the industry. The 512 GB models will see a price rise of $100, while the 1 TB models will cost $150 more than the current price. Moreover, Microsoft is also phasing out the 2 TB storage model, which is not surprising considering the context.

      What’s going on?

      Microsoft highlights that the industry is facing an unparalleled crisis due to a significant rise in the costs of memory and storage chips. The company reports that the average price has surged by a factor of 2.5 times, with no immediate relief in sight. They expect these costs to double again by the end of 2027.

      Following the price increase of up to $150 for Xbox consoles, Microsoft is introducing a Buy Now, Pay Later option. “We’ve simplified the process for players to utilize Buy Now, Pay Later options on eligible Xbox hardware purchases through Microsoft Stores, allowing for payment installments…” pic.twitter.com/6PgLHsEumw— Digital Trends (@DigitalTrends) June 25, 2026.

      The decision to increase Xbox console prices is not without precedent. The new chief of Microsoft, Asha Sharma, has often indicated that console hardware is becoming a more challenging value proposition in the current market context. Microsoft is not alone; other major players are also likely to raise prices or implement cost-cutting measures within their hardware offerings.

      The broader landscape

      Earlier today, Apple also raised the prices of its Mac and iPad hardware by several hundred dollars. Microsoft's new Surface tablets and laptops are also at their highest prices yet. To reduce costs, the company has introduced cheaper models by cutting the RAM down to 8GB and removing the Copilot+ feature from those devices, which directly impacts on-device AI capabilities.

      The outlook for memory pricing is quite bleak. Apple recently increased prices for Mac and iPad products, describing the current market conditions as unsustainable. #Xbox faces a similar challenge. The company stated: “Unfortunately, prices for console storage and memory… https://t.co/NERFunpNlv— Digital Trends (@DigitalTrends) June 25, 2026.

      This is not the first price increase for Xbox consoles in recent months. In October, Microsoft raised the price of its gaming console by approximately $70 in the U.S. The situation is not markedly different for competitors in the sector; gaming laptop prices have risen substantially. Even Valve's eagerly awaited Steam machine hit the market with a price tag of around $1,049 in the U.S.

      Nadeem serves as the Managing Editor at Digital Trends.

      Don't settle in just yet. Apple and Microsoft still have more price hikes in store.

      Price increases for Xbox and Apple devices could signal trouble for the broader tech industry. Earlier today, Microsoft announced a price hike for its Xbox consoles of up to $150 in the U.S. Just a few hours prior, Apple revealed a similar increase for its Mac and iPad lineup, along with higher prices for its Vision Pro headset and other products, excluding the iPhone. However, it appears these two giants may continue implementing price hikes.

      Although neither company has explicitly stated that additional price increases are imminent, their comments imply otherwise. For instance, Apple shared a statement with The Washington Post earlier today.

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      As Xbox prices rise, Microsoft launches a Buy Now, Pay Later program for consoles.

      The Buy Now, Pay Later option available at Microsoft Store applies to both new and refurbished Xbox Series S and X models.

      Earlier today, Microsoft raised the prices of its Xbox consoles by up to $150 in the U.S. Following this adjustment, the price for the Xbox Series X 2TB version has reached $800. The 1TB model is now priced at $650, while the Xbox Series S with 512 GB storage will now be sold for $400 in the U.S. market.

      What’s the strategy?

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      I found two Prime Day gaming laptop deals that avoid the usual RGB remorse.

      The smarter choice depends on whether you value RTX 5060 performance or a larger 18-inch screen more.

      Prime Day gaming laptop deals can seem impressive at first glance, but it is crucial to examine the actual specifications. The discounts become significant once you look at the GPU, display, memory, and storage. These two deals from MSI and ASUS stand out because their advantages are clear before finalizing the purchase.

      MSI Katana 15 HX

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