This will be the 4th time that Microsoft has increased the prices on their consoles in the past 13 months due to a massive spike in component and memory costs. This will be effective August 1, 2026. This was just announced on their website, news.xbox.com, a few hours ago.
Tracking the Trend: A Chronological History of Xbox Series X|S Price Hikes
When Microsoft launched the Xbox Series X and Series S back in 2020, they entered the generation with highly competitive price points: $499.99 for their flagship powerhouse and a budget-friendly $299.99 for the digital-only younger sibling.
However, macroeconomic pressures, inflation, and unprecedented supply chain disruptions have drastically altered that landscape. With Microsoft’s latest announcement signalling another massive jump, the days of the $500 flagship console are officially behind us.
To understand how we got here, let’s look at the chronological breakdown of every major Xbox hardware price increase since launch.
August 2023: The First International Wave
For the first few years of the generation, Microsoft held the line on pricing. That changed in late summer 2023 when regional inflation forced the tech giant to adjust the cost of the Xbox Series X across most major international markets.
UK: from £449.99 To $£479.99
Europe: From €499.99 To €549.99
Canada: From CAD $599.99 To CAD $649.99
Australia: From AUD $749.99 To AUD $799.99
The Silver Lining: At this time, Microsoft protected the US market, keeping the MSRP at $499.99. Additionally, the entry-level Xbox Series S escaped this initial wave completely unscathed.
October 2025: The US Market Takes a Hit
After shielding American consumers for years, the reality of rising production costs finally hit home. In October 2025, Microsoft rolled out its first domestic price adjustment in the United States, targeting both the Series X and the Series S.
Xbox Series X (1TB Disc): From $499 USD to $649 USD
Xbox Series S (512GB): From $299 USD to $400 USD
Xbox Series S (1TB): From $349 USD to $450 USD
Xbox Series X (1TB Digital): From $449 USD to $600 USD
August 1, 2026: The Global Component Crisis Spike
The most recent—and by far the most severe—adjustment was announced in June 2026, set to take effect on August 1. Driven by a brutal hardware manufacturing crisis, Microsoft revealed that the costs of producing memory and internal storage had skyrocketed by over 2.5x, forcing it to pass those expenses onto consumers worldwide.
This unprecedented hike slaps an extra $100 onto 512GB models and a staggering $150 onto 1TB models.
The New US Pricing Reality:
Xbox Series S 512GB: $499.99 (Up from $399.99)
Xbox Series S 1TB: $549.99 (Up from $449.99)
Xbox Series X 1TB All-Digital: $749.99 (Up from $599.99)
Xbox Series X 1TB (With Disc Drive): $800 (Up from $649.99)
In tandem with this massive pricing restructure, Microsoft is also streamlining its hardware lineup by officially discontinuing the premium 2TB “Galaxy Black” Special Edition Series X.
XBOX Rolls Out New Program to Keep Consoles Accessible.
Recognizing that these historic price hikes will undoubtedly leave a mark on consumer wallets, Microsoft also announced a suite of new financial initiatives aimed at lowering the barrier to entry. If you are still looking to pick up an Xbox Series X|S without draining your savings account all at once, the tech giant is leaning heavily into flexible payment plans, financing, and a renewed focus on the secondhand market.
1. “Buy Now, Pay Later” via Microsoft Store
If you are buying directly from the source, Microsoft is officially integrating popular “Buy Now, Pay Later” (BNPL) options at checkout for eligible Xbox hardware.
- How it works: Rather than paying the entire premium price upfront, players can split the cost into predictable, short-term, interest-free installments to better manage their immediate cash flow.
2. Up to 12-Month 0% APR Financing on Amazon
For those who prefer shopping via major online retailers, Microsoft has partnered with Amazon to offer a highly competitive financing alternative.
- How it works: Players picking up eligible Xbox systems can take advantage of 0% APR interest-free financing for up to 12 months. This stretches your budget further by locking down significantly lower monthly payments without the penalty of hidden interest fees.
3. A Revamped “Previously Played” Trade-In Program
In an effort to bolster the pre-owned market, Xbox is collaborating with retail partners on a new circular ecosystem designed to benefit both current owners and budget-conscious buyers.
- For Sellers: Players ready to upgrade or move on from their current hardware can trade in their used consoles at participating retailers in exchange for immediate cash or store credit.
- For Buyers: These trade-ins will be funnelled back onto store shelves as “previously played” units, offered at a substantially lower price point than retail MSRP.
4. Big Savings on Xbox Certified Refurbished Consoles
If you want hardware that feels brand new but carries a secondhand price tag, Microsoft is highlighting its official refurbishment program. Available directly through the Microsoft Store, Xbox Certified Refurbished Consoles are being offered at a steep discount—shaving up to $100 off the standard MSRP.
What do you think of these price adjustments? Will this push you toward PC gaming or competing platforms? Let us know your thoughts in the comments below!
Great info!