Whenever a console price hike is announced, the industry often assumes it will be the last adjustment. Yet, that assumption is proving to be a misconception.
Starting on August 1, 2026, Microsoft will revise the global pricing for its Xbox line. The 512‑GB units will see a $100 bump, while the 1‑TB models will rise by $150. In addition, the company is discontinuing the 2‑TB variant altogether.
Microsoft’s announcement cites a 2.5‑fold rise in storage and memory prices since the last adjustment in October, and the company projects another doubling by the fall of 2027.
The broader consumer electronics sector is grappling with a global components shortage, but the impact is especially acute for gaming consoles. Unlike smartphones, PCs, or audio gear, consoles are typically sold at a loss, meaning the margin squeeze directly erodes profitability.
This marks the third price increase for Xbox hardware since 2025. The first adjustment occurred in May of last year, a move many linked to the tariffs imposed by the Trump administration. A second hike followed in September, with Microsoft citing shifts in the macro‑economic landscape. The 2TB edition was pushed to an $800 price tag before being discontinued.
❓ Frequently Asked Questions (FAQ)
Why is Microsoft raising Xbox prices again?
Microsoft is increasing Xbox prices to offset rising component costs, particularly the steep rise in storage and memory prices. The company cited a 2.5-fold increase in these components since the last hike and expects another doubling by fall 2027, which forces it to adjust retail prices to maintain profitability.
Which Xbox models are affected and how much will the price increase?
Starting August 1, 2026, the 512‑GB Xbox model will see a $100 price bump, while the 1‑TB model will increase by $150. The 2‑TB variant has been discontinued and will no longer be sold.
What happened to the 2TB Xbox model?
Microsoft discontinued the 2‑TB Xbox model after it was priced at $800. The decision reflects a shift toward a more streamlined, cost‑effective product line in response to component shortages and margin pressures.
News Source: Kotaku
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