After two price hikes in one year, Xbox and Microsoft are going for the hat trick of price hikes, with the price of the Xbox Series X/S going up for the third time in 15 months. As of August 1, 2026, the price of a Series S/X console is going up by $100 or $150, respectively. The 2TB variant is also being discontinued.
The news comes from a statement shared on Xbox Wire, which also introduces multiple programs Microsoft is kicking up to try and make the consoles "more accessible," even amidst the prices rising yet again.
Before digging into that, here's what buying any model of an Xbox Series X/S console will set you back (in USD):
- Series X 1TB (disc drive) - $799.99 ($150 increase)
- Series X 1TB (digital) - $749.99 ($150 increase)
- Series X 2TB Galaxy Black - Discontinued
- Series S 512GB - $499.99 ($100 increase)
- Series S 1TB - $599.99 ($150 increase)
These price hikes mean that as of August 1, 2026, you can either buy a 1TB Series S or a digital edition PS5 for the same price. At least both versions of the Series X still available are still cheaper than a PS5 Pro. Which, is probably a layer to why the 2TB Series X was discontinued, since it wouldn't be a winning look for Xbox to put its far less powerful Series X at the same price as PlayStation's professional grade console. A console that, for what its worth, continues to look like the best deal in gaming, especially if you bought it at launch.
"Last October, we increased Xbox console price by $20-$70 in the U.S," the post on Xbox Wire reads. "We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current component crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."
Xbox isn't wrong to point out that component prices are an issue everyone in the tech industry is dealing with, though the segment that Wccftech has bolded is important for players to note. This is only expected to get worse than it is now. A price hike every five months over the past two years seems bad enough that it shouldn't be able to get worse, but it very likely could, and at least for now, there's no sign as to when things will turn around.
In the meantime, Xbox is introducing multiple new programs to give anyone still looking to buy a Series X/S more options than just forking over upwards of $500 all at once just to get their foot in the door. Its new Buy Now, Pay Later program (which was spotted in a previous leak) will let players break up the purchase of a console "into predictable short-term, interest-free installments," when buying a console through Microsoft Stores.
If you're buying one through Amazon, you'll be able to take advantage of Interest Free Financing, with 0% APR financing for up to 12 months to give you more flexibility in how you complete the payments. Microsoft will also work more closely with its retail partners to ensure it can stock shelves with used consoles or 'previously played' consoles at a lower price. Xbox will also sell certified refurbished consoles for $100 off MSRP.
These price hikes were already too much for your average player to keep up with, especially with the rising cost of living. At least when you're paying the component premium on a device like the Steam Machine, you're getting a full PC out of it.
Who knows if/when things get better when it comes to the cost of components, but the terrifying reality of these price hikes is that once they're established, they're likely not going back to what they were before. It's naïve to think that any of these companies would bring the cost of these consoles back down, even if the component crisis were to end tomorrow.
Close to, or over $1K for gaming hardware is officially the new normal, and the component crisis isn't going to end tomorrow.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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