via TechCrunch
Xbox Follows Apple with Console Price Increases Amid Rising Component Costs
Just hours after Apple announced price increases across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting more expensive. In addition, the company announced that it is discontinuing its 2TB model.
Starting August 1, Xbox console prices will rise worldwide. The 512GB models will cost $100 more, while 1TB versions are set to increase by $150.
Price changes are as follows:
- Xbox Series S 512GB: $399 → $499
- Xbox Series S 1TB: $449 → $599
- Xbox Series X 1TB Digital: $599 → $750
- Xbox Series X 1TB Disc: $649 → $800
Microsoft attributes the increases to rising memory and console storage prices, with costs more than 2.5 times higher than previous levels. The company warned that these prices could double by fall 2027. The move comes less than a year after its last U.S. Xbox price hike in October 2025.
The announcement follows Apple’s own round of price hikes affecting Macs and iPads. Apple cited the same industry-wide pressures: soaring memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.
Together, these back-to-back announcements underscore how much the AI boom is impacting everyday electronics. As technology companies invest heavily in larger AI systems, demand for advanced memory and storage chips has surged, tightening supply chains and pushing costs higher across the industry.
To soften the blow, Microsoft highlighted financing options and plans to expand access to lower-cost hardware. The company said it is “working on new programs to provide previously played consoles at lower prices.”
Customers purchasing eligible Xbox hardware through Microsoft Stores will have greater access to buy now, pay later programs, while Amazon shoppers can qualify for up to 12 months of 0% APR financing on eligible purchases.
Additionally, Microsoft now joins Sony in raising prices for gamers. The PS5 digital edition now costs $599, up from its $499 launch price. Meanwhile, Nintendo’s increase for the Switch 2 has been comparatively modest, but the rival may face pressure to raise prices further in the future.