Microsoft Raises Xbox Console Prices Worldwide and Ends 2 TB Model

*Effective August 1, 2026, Microsoft will increase prices on its remaining Xbox console models and remove the 2 TB variant from sale.*

Microsoft announced the changes on its Xbox blog. The 512 GB models rise $100 and the 1 TB models rise $150. The 2 TB model is discontinued. These adjustments follow an earlier round of increases last October that ranged from $20 to $70 in the United States.

The company attributes the move to sharp rises in storage and memory component costs. Those prices have climbed more than 2.5 times since the prior adjustment, with another doubling expected by fall 2027. Microsoft stated it worked with suppliers to avoid further increases but found no viable path.

Prior price action and component pressure

Last October’s increases already lifted U.S. console prices across the lineup. The new round applies globally and is larger in scale. The blog notes that consoles face steeper component cost exposure than phones, PCs, or other consumer electronics because they are rarely sold at a loss or subsidized by service revenue.

Industry context

Microsoft described a broader components crisis affecting the entire consumer electronics sector. Storage and memory have been the primary drivers for consoles. The company expects the cost trajectory to continue through 2027, leaving limited room to absorb the increases without passing them to buyers.

Why it matters

Higher entry prices and the loss of the highest-capacity model narrow options for buyers who want local storage without external drives. The repeated increases signal that component volatility now reaches directly into console pricing, a category long positioned on predictable hardware costs. Customers planning purchases before August 1 face a clear deadline; those waiting will pay more for less storage.

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Sources:

• Daring Fireball

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