With Xbox prices increasing, Microsoft introduces a Buy Now, Pay Later option for consoles.

      The buy now, pay later program offered by 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. Following this price adjustment, the cost for the Xbox Series X 2TB model has reached $800, the 1TB version now costs $650, and the Xbox Series S with 512GB storage is priced at $400 in the US market.

      What is the strategy?

      In an effort to retain gamers, Microsoft has rolled out a new payment scheme that allows for installment payments, now available through its official online stores. The Buy Now, Pay Later option is currently offered for the Xbox Series S and Xbox Series X consoles, covering both new and refurbished versions.

      With the recent price increase of up to $150, Microsoft is introducing the Buy Now, Pay Later choice. “We’ve made it easier for players to use Buy Now, Pay Later options on eligible XBOX hardware purchases through Microsoft Stores, making it possible to break up your payment...” — Digital Trends (@DigitalTrends) June 25, 2026.

      According to Microsoft’s website, the Buy Now, Pay Later system partners with PayPal, allowing customers to pay the total cost of a device in four interest-free installments (paid bi-weekly), or they can choose to make monthly payments spread over a longer period.

      If a buyer chooses the monthly payment option for an Xbox console, they have the flexibility to spread the payments over 24 months. Microsoft’s online store states that there are no late fees or sign-up costs associated with this program. “Flexible payment options help you pay how you want, at Microsoft Store,” the company mentions on its website.

      The catch and alternative

      To take advantage of the buy now, pay later facility at the Microsoft Store, which essentially extends the PayPal Pay Later arrangement, your purchase must first receive approval before you can determine the payment duration for the Xbox console.

      The scenario regarding memory pricing is quite bleak. Earlier today, Apple announced an increase in Mac and iPad prices, citing an unsustainable situation. #Xbox is facing a similar challenge. The company remarked: “Unfortunately, console storage and memory prices…” — Digital Trends (@DigitalTrends) June 25, 2026.

      If your purchase is not approved by PayPal or if you lack a PayPal account, you can visit Amazon and procure an eligible Xbox console through a financing option at zero interest over 12 months.

      Microsoft isn't the only entity grappling with the pressure of increasing memory and storage chip prices, which are ultimately driving hardware costs upward. Earlier today, Apple significantly raised prices for its Mac and iPad products as well. Additionally, the prices for PCs and laptops are on the rise, with Valve also pricing its Steam machine at over $1,000 in the US market.

      Nadeem is the Managing Editor at Digital Trends.

      Don't relax just yet. Apple and Microsoft are not finished with price increases.

      The recent price hikes for Xbox and Apple devices could serve as a warning for the broader tech industry.

      Earlier today, Microsoft announced a price increase of up to $150 for its Xbox consoles in the US. Just hours prior, Apple revealed a similar increase for its Mac and iPad lines, as well as higher prices for its Vision Pro headset and a few other items (excluding the iPhone). However, indications suggest that these two companies may not be done raising prices.

      Neither firm has explicitly confirmed that more price hikes are on the way, but their statements imply otherwise. For instance, Apple provided a statement to The Washington Post earlier today.

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      The smarter choice depends on your priorities: RTX 5060 performance or a larger 18-inch display.

      Prime Day gaming laptop deals might seem impressive at first glance, but a closer look at the specifications is essential. For gaming laptops, the discount becomes noteworthy only after evaluating the GPU, display, memory, and storage. These two MSI and ASUS offers stand out because their advantages are clear before making a purchase.

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