Microsoft raises Xbox console prices as memory costs climb
Xbox Series S and Series X prices will rise Aug. 1, with Microsoft citing a sharp increase in storage and memory component costs.
By James Whitfield · Staff Writer
2 min read
Microsoft is raising U.S. prices for Xbox consoles on Aug. 1, increasing the cost of current 512GB and 1TB models by $100 to $150. The company said the higher prices reflect a sharp rise in storage and memory costs, a component squeeze it says is hitting console economics especially hard.
Under the new pricing Microsoft announced, 512GB Xbox models will cost $100 more, while 1TB models will cost $150 more. The Xbox Series S will start at $499.99, the Xbox Series X without a disc drive will start at $749.99, and the Series X with a disc drive will start at $799.99.
Microsoft also said it will discontinue, or “sunset,” its 2TB Xbox Series X. The company did not provide additional details in the announcement about timing beyond the broader Aug. 1 price change.
Why Microsoft says prices are rising
Microsoft said in a blog post that it raised U.S. Xbox console prices last October by $20 to $70 and had hoped to avoid another increase. The company said it spent recent months working with suppliers on alternatives before deciding on the new price structure.
The company said console storage and memory prices have climbed by more than 2.5 times. Microsoft said it expects those costs to double again by the fall of 2027.
Microsoft described the issue as part of a broader component crisis affecting consumer electronics. It said the pressure is especially difficult for consoles because, unlike phones, computers, speakers and other devices, game systems are often sold below manufacturing cost rather than at a profit.
The price increase places Xbox alongside other consumer tech products affected by rising memory costs, according to Microsoft’s explanation. The company did not announce any changes to Xbox software, accessories or services in connection with the console price move.
Payment and used-console options
Microsoft said it is adding programs meant to reduce the upfront burden of buying a new Xbox. Those options include a buy-now, pay-later plan and interest-free financing for purchases made through Amazon.
The company also said it is working with retail partners on programs that would offer previously played consoles at lower prices. Microsoft did not name the retail partners in the announcement or say when those used-console programs would begin.
The new prices mean the current Xbox hardware lineup will become notably more expensive less than a year after Microsoft’s prior U.S. console price increase. Microsoft tied both the latest increase and its search for financing options to the same pressure point: rising memory and storage costs across the electronics supply chain.
This story draws on original reporting from The Verge.