Microsoft ($MSFT) said Xbox console prices will increase worldwide beginning Aug. 1, citing a worsening storage and memory components shortage that has driven console hardware costs sharply higher. The company will raise prices by $100 for 512GB models and $150 for 1TB models, while discontinuing its 2TB console, saying storage and memory prices have risen more than 2.5x and could double again by late 2027.
- Xbox console prices increase Aug. 1 by $100 for 512GB models and $150 for 1TB models.
- Microsoft will discontinue its 2TB Xbox model.
- The company said storage and memory component costs have risen more than 2.5x and may double again by fall 2027.
- Microsoft said consoles are typically sold below manufacturing cost, making component inflation especially difficult to absorb.
- New financing, trade-in, and certified refurbished programs will launch alongside the price increases.
Relevant Companies
- Microsoft ($MSFT) – Higher Xbox pricing reflects rising hardware costs and broader pressure on its gaming business.
- Apple ($AAPL) – Recently raised Mac and iPad prices, citing similar memory and storage component inflation.
- Sony Group ($SONY) – Previously increased PlayStation 5 prices as console manufacturers contend with higher component costs.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
