As Xbox prices increase, Microsoft introduces a Buy Now, Pay Later program for its consoles.

      The buy now, pay later option offered on the Microsoft Store applies to both new and refurbished Xbox Series S and X models.

      Earlier today, Microsoft increased the prices of its Xbox consoles by as much as $150 in the United States. As a result, the price for the Xbox Series X 2TB version has soared to $800. The 1TB variant is now priced at $650, while the Xbox Series S with 512GB of storage will now retail for $400 in the U.S. market.

      What’s the strategy?

      To keep gaming fans engaged, Microsoft has rolled out a new installment payment plan for its consoles, which is now available through its official online stores. The Buy Now, Pay Later program is currently applicable to both new and refurbished units of the Xbox Series S and Xbox Series X.

      With the increase in Xbox prices by up to $150, Microsoft is now presenting the Buy Now, Pay Later option. According to the company, “We’ve made it easier for players to utilize Buy Now, Pay Later options on eligible Xbox hardware purchases through Microsoft Stores, allowing for payments to be divided…”

      As stated on Microsoft’s website, the Buy Now, Pay Later system collaborates with PayPal, enabling you to pay the total cost of a console in four bi-weekly installments at no interest, or alternatively, you can choose monthly payments spread over a longer period.

      If you choose the monthly payment plan for an Xbox console, you may divide the payments over 24 months. There are no late fees or sign-up costs. The company emphasizes on its online store, “Flexible payment options help you pay how you want at Microsoft Store.”

      The catch and alternative

      To take advantage of the buy now, pay later option on the Microsoft Store, which is effectively an extension of the PayPal Pay Later system, your purchase must first receive approval before you can choose the payment duration for the full Xbox console cost.

      The current situation regarding memory pricing is concerning. Earlier today, Apple increased prices for its Mac and iPad products, citing an unsustainable situation, and Xbox faces similar challenges. Microsoft stated, “Unfortunately, console storage and memory prices…”

      If your purchase is not approved by PayPal or if you do not possess a PayPal account, you can visit Amazon to buy an eligible Xbox console through a financing option with zero interest, spread over a 12-month term.

      Microsoft isn’t the only company affected by the rising prices of memory and storage chips, which ultimately compels them to raise hardware costs. Earlier today, Apple also significantly increased the prices of its Mac and iPad products. In addition, the costs of PCs and laptops have surged, and even Valve had to set the price of its Steam machine at over $1,000 in the U.S. market.

      Nadeem is the Managing Editor at Digital Trends.

      Do not get too comfortable just yet. Apple and Microsoft are not finished with their price increases.

      The price hikes for Xbox and Apple devices could signal a concerning trend for the broader tech industry.

      Earlier today, Microsoft announced raises of up to $150 for its Xbox consoles in the U.S. Just hours prior, Apple revealed similar price increases for its Mac and iPad lines, also including hikes for its Vision Pro headset and several other items, with the exception of the iPhone. However, it appears these two industry leaders are not finished with their pricing adjustments.

      Neither company has explicitly stated that further increases are on the way, but their messages suggest the possibility. For instance, Apple’s remarks shared with The Washington Post earlier today highlight this concern.

      Microsoft has just revealed that the prices of Xbox consoles will rise in the U.S. as the company confronts an unprecedented crisis in the industry. Pricing for the 512GB models is increasing by $100, while the 1TB models will see a $150 increase from the current prices. Moreover, Microsoft is discontinuing the 2TB storage model, and the reasons are clear.