Microsoft increases Xbox prices for the third time in 13 months, with the Series X now costing $800 due to memory shortages.
TL;DR: Xbox prices will increase by $100 to $150 starting August 1, raising the Series X to $800. Microsoft cites rising memory costs and is discontinuing the 2TB model.
Microsoft will raise the prices of all Xbox consoles by $100 to $150, effective August 1. This adjustment brings the price of the Xbox Series X with a disc drive to $800, which is an increase of $300 from its initial launch price of $500 in November 2020. This marks the third price hike for Xbox products in just 13 months.
The 512-gigabyte models will see a $100 increase, while the one-terabyte models will be $150 higher. The Xbox Series S will be priced at $500 for the 512-gigabyte version and $600 for the one-terabyte model. The digital Xbox Series X will be listed at $750.
Additionally, Microsoft will be discontinuing the two-terabyte Xbox Series X, referring to it as “sunsetting.” The company stated on Xbox Wire that the costs for console storage and memory have risen more than two and a half times, and they anticipate those expenses to double again by fall 2027. “We hoped another price increase would not be necessary,” they noted.
This announcement coincided with Apple’s price hikes on its Mac and iPad ranges, attributing the increases to the same memory shortage. Earlier this year, Apple discontinued its $600 Mac Mini due to a 90% surge in DRAM prices in just one quarter, caused by Samsung, SK Hynix, and Micron shifting production to high-bandwidth memory for AI data centers. On Thursday, Apple raised prices on MacBooks, iPads, and home products while keeping iPhone prices stable.
Historically, consoles have been sold at or below manufacturing costs, with platform holders recouping investment through game sales, subscriptions, and accessories. This model relies on steady component costs; when memory prices rise dramatically, the financial viability of subsidizing hardware diminishes.
Microsoft first raised Xbox prices in May 2025, increasing the Series X from $500 to $600, followed by another increase in October 2025, raising it to $650. The upcoming August increase will mark the largest yet, with $150 added to the one-terabyte Series X in a single adjustment.
To mitigate the impact of these price changes, Microsoft will offer buy-now-pay-later options through the Microsoft Store, enabling customers to pay in short-term, interest-free installments. They framed this financing option as a response to the “challenging” pricing landscape.
Microsoft is not the only company raising prices; Sony has also increased PlayStation prices multiple times, with the PS5 disc edition now priced at $650 and the PS5 Pro at $900. Nintendo has confirmed that the Switch 2 will increase from its initial $450 launch price in June 2025 to $500 in September.
The AI-driven memory crisis has already pushed GoPro to near bankruptcy and eliminated the sub-$100 smartphone segment in India and Africa. Gaming consoles are now the latest consumer electronics category to bear the costs associated with industry-wide memory production reallocations toward AI infrastructure.
The $500 console price point, which held since the Xbox 360 era through the Series X launch, seems to be a thing of the past. At $800, the Xbox Series X now costs more than many gaming PCs and is in the same range as the $900 PS5 Pro. Whether gamers will continue to invest at this price is a question that remains unanswered by Microsoft.
Other articles
Unconventional AI has launched its initial model, which is designed on an oscillator architecture that has the potential to reduce AI power consumption by a factor of 1000.
Naveen Rao's Unconventional AI has introduced Un-0, an image generation model that operates on a simulated oscillator chip architecture, which it asserts could significantly reduce power consumption.
Coval secures $28 million to evaluate the performance of AI voice agents under pressure.
Coval has secured $28 million in funding, led by Norwest, to replicate and evaluate enterprise AI voice agents prior to their performance in actual customer calls.
Klue reports that the hackers responsible for stealing customer data are in the process of deleting it, while a second group has come forward with demands for extortion.
Klue reports that the hacking group Icarus is removing stolen customer information, while a second unnamed group asserts that they possess the data and are directly extorting the victims.
Klue reports that the hackers responsible for stealing customer data are removing it, but another group has surfaced with demands for extortion.
Klue reports that the hacking group Icarus is removing stolen customer data; however, a second unnamed group asserts that it possesses the data and is directly extorting the victims.
Sarah Wynn-Williams files a lawsuit against Meta for trying to silence her.
Whistleblower Sarah Wynn-Williams is taking legal action against Meta due to its attempts to suppress her, following a gag order that imposed a $50,000 fine for each public critique of the company.
Coval secures $28 million to evaluate AI voice agents under pressure.
Coval has secured $28 million in funding, spearheaded by Norwest, to model and assess enterprise AI voice agents prior to their performance in actual customer calls.
Microsoft increases Xbox prices for the third time in 13 months, with the Series X now costing $800 due to memory shortages.
Starting August 1, Xbox consoles will see a price increase of $100 to $150, bringing the cost of the Series X to $800. Microsoft attributes this rise to the more than doubling of memory expenses.