Microsoft has recently increased the prices of Xbox consoles by as much as $150.
Microsoft Stores will introduce a buy now, pay later option with zero interest, and a similar 12-month financing plan will be offered through Amazon.
Microsoft has announced an increase in the price of Xbox consoles in the US amid an unprecedented crisis affecting the industry. The price for the 512 GB models will rise by $100, while the 1 TB models will see a price increase of $150. Additionally, Microsoft is discontinuing the 2 TB storage model, which is not surprising given the circumstances.
What’s going on?
Microsoft indicates that the industry is experiencing a unique crisis with a significant surge in the prices of memory and storage chips. The average price has reportedly increased by 2.5 times, with no immediate relief expected. The company anticipates that memory and storage chip costs will double again by the end of 2027.
With the Xbox prices now rising by as much as $150, Microsoft is introducing the Buy Now, Pay Later option. "We’ve made it easier for players to utilize Buy Now, Pay Later options on eligible Xbox hardware purchases through Microsoft Stores, allowing for payment plans..." pic.twitter.com/6PgLHsEumw— Digital Trends (@DigitalTrends) June 25, 2026
The decision to increase Xbox console prices is not without precedent. The new chief, Asha Sharma, has noted several times that the console hardware's value proposition is becoming increasingly difficult in the current market. Microsoft is not the only major player to raise prices or implement cost-cutting measures throughout its hardware offerings.
The bigger picture
Earlier today, Apple also raised prices for 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 less expensive models by cutting the RAM down to 8GB and removing the Copilot+ badge, which means a reduction in on-device AI capabilities.
The outlook for memory pricing remains bleak. Earlier today, Apple increased Mac and iPad prices, citing an unsustainable situation. Xbox is facing similar challenges. The company stated, "Unfortunately, console storage and memory prices… https://t.co/NERFunpNlv— Digital Trends (@DigitalTrends) June 25, 2026
This is not the first price increase for Xbox consoles in recent times. In October, Microsoft raised the price of its gaming console by about $70 in the US. The situation is similarly grim for competitors. Gaming laptop prices have risen sharply as well, with Valve’s highly anticipated Steam machine entering the market at a price of around $1,049 in the US.
Nadeem is the Managing Editor at Digital Trends.
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Microsoft has recently increased the prices of Xbox consoles by as much as $150.
In the US, the cost of the 512GB storage model will increase by $100, whereas the 1TB version will experience a price hike of $150.
