Xbox Console Prices Are Increasing Worldwide on August 1

Microsoft has announced a worldwide Xbox console price update, with new pricing set to take effect on August 1, 2026. According to Xbox Wire, the price of Xbox consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models. Microsoft also confirmed that it is sunsetting the 2 TB model, meaning that version is being phased out rather than continuing under the updated pricing structure.

The announcement was published on June 25, 2026, under the title “Updated XBOX Console Prices.” Xbox says it previously raised U.S. console prices last October by $20–$70, but had hoped another increase would not be necessary. The company now says component costs have made the second increase unavoidable. Specifically, Xbox points to console storage and memory prices, saying those costs have risen by more than 2.5x and are expected to double again by fall 2027.

Microsoft frames the issue as part of a wider consumer electronics supply problem, but says consoles are under unusual pressure because they are often sold at little or no profit, or below manufacturing cost. That makes hardware pricing more sensitive to jumps in memory, storage, and component expenses than categories like phones, computers, or speakers, where margins can work differently.

For players, the practical takeaway is simple: anyone planning to buy an Xbox console in the near future now has a clear deadline. The updated prices begin on August 1, so the remaining weeks before that date may become important for shoppers comparing current retail pricing, refurbished units, bundles, and trade-in options. The official post does not list a full model-by-model price table, so buyers should check local retailers and the Microsoft Store directly before purchasing.

Xbox also announced several affordability programs alongside the price increase. These include expanded Buy Now, Pay Later options through Microsoft Stores for eligible hardware purchases, 0% APR financing for up to 12 months through partners, retail programs for previously played consoles, and Xbox Certified Refurbished Consoles through Microsoft Stores for up to US$100 off MSRP. Microsoft notes that payment options vary by region and that credit is provided by third parties subject to eligibility and terms.

That messaging is important because Microsoft is not just raising the sticker price and moving on. It is also trying to keep Xbox hardware accessible through financing, used hardware, trade-ins, and certified refurbished systems. Still, those options are not the same as a lower base price. Financing spreads the cost out, refurbished units depend on availability, and trade-in programs vary by retailer and region.

The change also arrives during a major year for Xbox’s game lineup. Xbox Wire specifically mentions Xbox Series S as the lowest-cost console route for upcoming or recent major releases including Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved, and Madden NFL 27.

From a market perspective, the price increase creates a more complicated hardware message. Xbox has spent years broadening its ecosystem across console, PC, cloud, handhelds, Game Pass, and Xbox Play Anywhere. Higher console prices may push some players toward PC, cloud gaming, used hardware, or the lower-cost Series S. At the same time, console remains the simplest way for many players to access big living-room releases without managing PC specs or streaming quality.

What is not confirmed in the post: Microsoft does not provide a full global price list, does not announce Game Pass price changes, does not mention accessory price changes, and does not provide a final cutoff date for remaining 2 TB stock. The announcement is focused specifically on Xbox console hardware pricing, the discontinuation of the 2 TB model, and affordability options.