Microsoft Increases Xbox Console Prices Globally, Discontinues Xbox Series X 2TB Model

By Ashwini Kuldeep on Jun 26, 2026 07:31 AM

Microsoft has announced revised global pricing for its Xbox console lineup, with the new prices taking effect from August 1, 2026. The company is also discontinuing the 2TB variant as part of the updated lineup, citing rising manufacturing and component costs across the consumer electronics industry.

Xbox Console Prices to Increase Globally

Beginning August 1, Microsoft will raise the retail price of Xbox consoles worldwide. The 512GB models will see a price increase of US$100, while the 1TB variants will cost US$150 more than before. At the same time, the company will phase out the 2TB version from its product portfolio.

The move follows an earlier price revision introduced in October 2025, when Xbox console prices in the United States increased by between US$20 and US$70. Microsoft said it had worked closely with suppliers in an effort to limit further increases, but ongoing economic conditions and higher production costs made the latest adjustment unavoidable.

Rising Component Costs Behind the Decision

Microsoft attributed the pricing changes primarily to the continued rise in storage and memory costs, which have become significantly more expensive over the past year.

Storage and Memory Costs: Prices for storage and memory components have increased by more than 2.5 times, with industry forecasts suggesting they could double again by autumn 2027.
Gaming Console Business Model: Unlike smartphones and PCs, gaming consoles are typically sold at cost or below cost. This makes console manufacturers more vulnerable to fluctuations in component pricing and supply chain disruptions.

Financing and Trade-In Programs

To help offset the impact of the higher prices, Microsoft is expanding its financing options and introducing new retail initiatives for Xbox buyers.

Buy Now, Pay Later (BNPL): Eligible Xbox hardware purchased through the Microsoft Store can now be paid for in short-term, interest-free installments.
0% APR Financing: In partnership with select retail stores, Microsoft will offer interest-free financing for up to 12 months on qualifying Xbox products.
Trade-In Program: Customers can trade in eligible Xbox consoles for cash or store credit. Refurbished units will then be resold through participating retailers as "Previously Played" consoles at lower prices.
Certified Refurbished Consoles: Microsoft Stores will continue offering Xbox Certified Refurbished Consoles, providing savings of up to US$100 compared to standard retail pricing.

Future Outlook

Microsoft confirmed that the Xbox Series S will continue to serve as the most affordable entry point into the Xbox ecosystem despite the revised pricing strategy.

The updated pricing comes ahead of a strong lineup of upcoming game releases, including Grand Theft Auto VI, Gears of War: E-Day, Call of Duty: Modern Warfare 4, Assassin's Creed Black Flag Resynced, Halo: Campaign Evolved, and Madden NFL 27.