Xbox Series X And S Prices Jump Again With $100 To $150 Increases
Microsoft is raising prices of its Xbox Series X and S game consoles once again, marking the third time the company has done so in just over a year. Beginning in August. all Xbox consoles with 512GB of built-in storage will go up in price by $100 while 1TB models will see a bigger $150 price hike. What about Microsoft's 2TB variant? That one is being sunsetted.
The reason for another round of price hikes is a familiar one—continued rising costs of key components, particularly memory and storage chips, driven by insatiable demand to fuel AI's explosive growth. Forecasts are always shifting, but it is generally believed that the memory shortage will persist through at least next year, and potentially into the next decade.
"Last October, we increased XBOX console price by $20-$70 in the U.S. 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," Microsoft states in a blog post.
Microsoft's remarks echo a similar statement issued by Apple CEO Tim Cook after announcing sweeping price increases across its Mac and iPad lineups, as well as consumer devices like its Apple TV set-top box and HomePod speaker.
According to Microsoft, while the consumer electronics industry as a whole is struggling with the current component crisis, the situation has been "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," Microsoft explains.
To help deal with the situation, Microsoft said it is working with retail partners on new programs to offer discounted used consoles. It's also working with partners on 0% APR financing (for up to 12 months) and offering 'Buy Now, Pay Later' options on eligible Xbox hardware purchased through Microsoft Stores.
The timing is especially crummy as the third round of price hikes arrive just ahead of Rockstar Games releasing Grand Theft Auto VI, which is now available to preorder (see our GTA VI preorder guide). As the most anticipated video game of all time, there is no doubt that the next major installment in the long-running Grand Theft Auto franchise will spur a wave of upgrades, especially since it is only available on console at the outset.
If you are wanting to get ahead of the Xbox's price increases, here are some of the best available options:
As points of reference, the current pre-prike hike MSRPs for Xbox consoles sit at $399.99 (512GB) and $449.99 (1TB) for the Series S, $599.99 for the Series S 1TB Digital Edition, and $649.99 for the Series X 1TB with a disc drive.
