Microsoft Raises Xbox Series X|S Prices by Up to $150, Drops 2TB Model

Console buyers face higher costs for Microsoft's Xbox Series X and Series S starting in August 2026. The company is raising prices on its remaining mid-tier and high-capacity models while removing the top-tier option from the lineup. This shift reflects broader supply chain pressures that are hitting the hardware market harder than other consumer electronics sectors. Gamers planning to upgrade or purchase a new console this year will need to adjust their budgets accordingly.

Microsoft raises prices on remaining storage tiers while ending 2TB production

Microsoft is implementing these changes across the Xbox Series X and Series S product lines. The adjustments specifically target the 512GB and 1TB storage variants that remain in production. The company attributes the pricing changes to a components crisis that has made storage and memory significantly more expensive. This strategic move aims to mitigate rising production costs while maintaining the availability of core console models.

• 512GB Model Price Increase: $100
• 1TB Model Price Increase: $150
• 2TB Model Status: Discontinued
• Effective Date: August 1, 2026

The 512GB models will see a price increase of $100 effective August 1, 2026. The 1TB models will face an even larger hike, with prices rising by $150. Microsoft is discontinuing all 2TB models entirely, ending that storage tier for the current generation. These changes mean that consumers seeking higher storage capacity must look toward other options or accept the reduced capacity of the base models.

Microsoft cited the broader industry struggle with component shortages as a primary driver for these decisions. The company noted that console manufacturers are feeling the effects of the crisis more acutely than other sectors. To help customers manage the increased costs, Microsoft is introducing new financing options. These include Buy Now, Pay Later services, 0% APR financing through Amazon, and refurbished or trade-in programs.

The price hikes and discontinuation mark a significant shift in the Xbox hardware strategy for the remainder of this generation. Buyers will face steeper upfront costs for the 512GB and 1TB models while losing access to the 2TB variant. The new financing options provide some flexibility for those who need to spread out the additional expense. This adjustment ensures the consoles remain available despite the challenging economic environment for hardware components.