Xbox to Increase the Cost of Consoles in August by 100+ USD, 2 TB Model to Be Sunset

Xbox consoles are about to get more expensive. Starting August 1st, all Xbox consoles are getting a price increase, specifically 100 USD for the 512 GB model, and 150 USD for the 1 TB models. The only exemption from this increase will be the 2 TB model... because it's getting discontinued. For those keeping score at home (prices in USD):

• Xbox Series S:

  • 512 GB: From 399 to 499

  • 1 TB: From 449.99 to 599.99

• Xbox Series X:

  • 1 TB digital: From 599.99 to 749.99

  • 1 TB disk: From 649.99 to 799.99

  • 2 TB disk: From 799.99 to NOPE

Xbox will also be launching a series of financing programs to allow people to buy the consoles, in addition to its Refurbished program that can save you 70-100 USD on a console. You can blame this increase on the push for AI, which is the same reason for the price of the newly-announced Steam Machine, and the price increase of the Steam Deck.

Quote From Xbox Wire

Effective August 1, 2026, we will be updating prices worldwide. The price of XBOX consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models. We will also be sunsetting our 2 TB model.

Last October, we increased XBOX console price by $20-$70 in the U.S. 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.

Today we are also sharing programs to make XBOX consoles more accessible:

• Buy Now, Pay Later: We’ve made it easier for players to use Buy Now, Pay Later options on eligible XBOX hardware purchases through Microsoft Stores, making it possible to break up your payment into predictable short-term, interest-free installments.

• Interest Free Financing: Players purchasing eligible XBOX hardware through Amazon can take advantage of 0% APR financing for up to 12 months, giving players more flexibility with lower monthly payments and more budgeting control.

• Previously Played Consoles: We are working with retail partners on new programs to provide previously played consoles at 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.

• Certified Refurbished Consoles: XBOX Certified Refurbished Consoles are available at Microsoft Stores for up to US$100 off MSRP.

XBOX Series S remains the lowest-cost way for console players to enjoy the biggest hits this year, 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.

Did you manage to get an Xbox before the price hike? Are you planning on getting one now? Let us know in the comments below!