XBOX Console Prices Are Increasing by Upto $150 Starting August 1, 2TB Model Discontinued

If you were hoping Xbox console prices had finally settled down, think again. Microsoft has announced another worldwide price increase, and this time the company isn’t sugarcoating the reason behind it. According to Xbox, soaring memory and storage costs have made another adjustment unavoidable.

Starting August 1, 2026, Xbox consoles will become significantly more expensive worldwide. Microsoft says 512GB models will increase by $100, while 1TB versions will see a $150 price hike. At the same time, the company confirmed that its 2TB Xbox console is being discontinued, bringing an end to the highest-capacity model in the lineup.

The company says console storage and memory prices have risen by more than 2.5 times, and it expects costs to double again by fall 2027. Microsoft also reminded customers that this isn’t the first increase.

Last October, Xbox hardware prices climbed by $20 to $70 in the United States. The company says it spent months working with suppliers in an effort to avoid another increase but ultimately concluded it wasn’t possible.

According to Xbox, gaming consoles remain one of the few consumer electronics products that are generally sold below manufacturing cost, unlike smartphones, PCs and many other devices that generate profit on the hardware itself.

To curb the impact, Microsoft also announced different purchasing programs. These include Buy Now, Pay Later options via Microsoft Store, 0% financing for eligible Xbox purchases via Amazon in supported regions, expanded trade-in programs for previously owned consoles, and Xbox Certified Refurbished systems that can cost up to $100 less than standard retail pricing.