A new announcement from Microsoft confirms that prices for all Xbox consoles will increase by $100 or more, along with the 2 TB model of the consoles being discontinued. Due to the ongoing “component crisis”, as stated by Microsoft, all Xbox consoles will see a steep price increase from August 1, with the 512 GB models rising by $100 and the 1TB models by $150.
Below are the official new prices for all current Xbox consoles:
- Series X 1TB with Disk will be $799.99 (from the earlier price of $649.99)
- Series X 1TB Digital will be $749.99 (from an earlier price of $599.99)
- Series S 1TB will be $599.99 (from the earlier price of $449.99)
- Series S 512GB will be $499.99 (from earlier price of $399.99)
“Last October, we increased Xbox console price by $20-$70 in the U.S.” Microsoft stated. “We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.”
“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
Besides the announcement of the new prices for Xbox, Microsoft also pointed to some of the ways players can make new purchases of the consoles easier like the Buy Now, Pay Later option along with interest free financing. The company has said that it’s also working with retailers to make second-hand consoles available at much lower prices:
“Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit. Those consoles will then be made available at lower prices for players.”
In other news of Microsoft’s gaming division, several weeks ago, Xbox Game Studios boss Craig Duncan announced his retirement from the role after 20 months and in addition, Chief of Staff Louise O’Connor who has been a part of the platform for far longer, will also be leaving Xbox soon. And coupled with the imminent layoffs, possible studio closures and job cuts that will be held within the company in July, it seems like troubling times are ahead for Xbox.
