Microsoft raises Xbox console prices worldwide by up to $150

Microsoft’s Xbox unit will raise console prices worldwide on August 1, adding as much as $150 to some models as memory and storage costs climb across the electronics industry. The cheapest Xbox Series S with 512 GB of storage will rise by $100 to about $500, while the entry-level Xbox Series X will start at about $750 after a $150 increase.

Xbox said the higher prices reflect a sharp rise in the cost of components that go into game consoles, especially storage and memory chips. The company said those prices have climbed more than 2.5 times and could double again by fall 2027, a sign of how quickly the hardware market is moving against manufacturers. Microsoft will also discontinue its 2 TB model, narrowing the lineup just as the company pushes players toward less expensive entry points.

The price increase lands after Microsoft raised Xbox prices twice in the previous year and after Sony lifted PlayStation 5 prices in April, following another increase last August. That sequence shows how console makers are passing on a harsher cost environment instead of absorbing it, even as hardware remains the front door to software sales, subscriptions and accessories that drive much of the gaming business.

The pressure is not confined to gaming. Groups representing automakers, retailers, electronics firms and other industries warned earlier in June that rising demand for memory chips could trigger dramatic price increases in U.S. consumer goods and disrupt supply chains. The warning echoes the same supply strain now hitting Xbox, where memory and storage parts are becoming more expensive as demand grows for chip capacity tied to artificial intelligence data centers.

Microsoft is also tightening spending inside the gaming division. Reuters reported on June 10 that Xbox was planning major layoffs next month and significant cuts to marketing and other budgets, in what would be the first major restructuring under Xbox chief executive Asha Sharma, who took charge in February. The pricing move and the planned cuts point to a company trying to protect margins while the cost of hardware inputs keeps moving higher.

Xbox said the Series S remains the lowest-cost way to play upcoming titles including Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved and Madden NFL 27. But with console prices climbing ahead of the holiday buying season, the cost of entering the Xbox ecosystem is now rising at the same moment as the parts that power it.