Xbox had already torpedoed most reasons to buy an Xbox Series X with its 2025 price hikes. Now, it’s demolishing any hope of an affordable Series S or Series X console in 2026 with yet another massive price surge.
Xbox looked at Apple’s Thursday price hikes and said, “Hold my beer.” Starting on Aug. 1, every Xbox console will cost either $100 or $150 more, depending on the amount of SSD storage inside. Microsoft is increasing the 512GB Xbox Series S price from $400 to $500. That’s as much as the more powerful Xbox Series X cost at launch back in 2020. In addition, Microsoft’s most-performant Series X console will demand a whopping $750, and that’s without an optical drive.
Here’s the new total cost breakdown:
- Xbox Series S 512GB: $400 → $500 (+$100)
- Xbox Series S 1TB: $450 → $600 (+$150)
- Xbox Series X Digital 1TB: $600 → $750 (+$150)
- Xbox Series X: $650 → $800 (+$150)
Xbox is also sunsetting its 2TB Galaxy Black edition Series X. That console cost $800 after last year’s price increases, but it seems Xbox can no longer afford the cost of memory for its gaming consoles. The price gouging announcement has arrived the same day gamers started putting their money down on the $80 Grand Theft Auto VI. Now, the $600 PlayStation 5 is looking slightly more appetizing if you hope to play Rockstar’s crime drama at 4K resolution.
“We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options,” the company said. “Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027.”
Xbox is adding an option to finance your new console. Those who want to set up installment plans can break up payments into smaller, interest-free installments. Xbox did not provide many details on how much users can expect to pay in these 12-month financing deals. Xbox will also push new refurbished consoles sold through Microsoft.com for “up to $100 off” the suggested retail price. Currently, a “Certified Refurbished” Series X digital edition console costs $500.
Early this month, Xbox CEO Asha Sharma warned that memory prices were becoming untenable. The company’s recently installed chief strategist, Matthew Ball, warned that memory is becoming constrained by upwards of 30% to 40% leading into next year.
This is all grim tidings for Xbox’s upcoming console, dubbed Project Helix. Sharma wrote in a public message to staff: “We are currently unable to make as many consoles as players want to buy, and we need a new business model and partnerships for hardware as we remain committed to Helix.” Xbox was hoping to compete on performance with Valve’s Steam Machine, which costs $1,050 with just 512GB of storage and no controller.
