Xbox Price Hike: Microsoft Raises Console Costs Globally on August 1st

Microsoft has announced a significant increase in Xbox console prices, effective August 1st. The company revealed that the price for the 512GB models will rise by $100, while the 1TB models will see an increase of $150. As a result, the entry-level Xbox Series S will now be priced at $500, and the Series X will start at $750, marking a 50% increase since its launch over five years ago.

This decision by Microsoft is attributed to the ongoing memory crisis affecting the tech industry. According to the Xbox team, prices for memory components and storage devices have surged more than 2.5 times since the last price adjustment. They anticipate a further doubling of costs by fall 2027. Unlike smartphones, PCs, or speakers, gaming consoles are often sold at or below manufacturing costs, which complicates profitability for manufacturers.

Uncertain Euro Pricing

While Microsoft has indicated a global price adjustment, specific euro pricing details for Germany remain unspecified. Recently, the recommended retail prices for the Xbox Series X and Series S were raised by €50 each on May 1, 2025. This means that the Xbox Series S with 512GB of storage is currently priced at €350, while the Series X with a drive costs €600. A previous increase ranging from $20 to $70 was limited to the U.S. market in October 2025.

Additionally, Microsoft has decided to discontinue the 2TB model of the Xbox Series X, ceasing its production.

Sony’s Price Hikes

Microsoft isn’t alone in this trend; Sony has also raised the prices of its PlayStation 5 multiple times. Since April 2, 2026, the manufacturer charges €650 for the standard version and €600 for the digital edition, attributing the increases to the ongoing memory crisis. It’s worth noting that street prices can often fall below these suggested retail prices.

The rising costs of memory affect the entire industry. Valve has announced its new Steam Machine, a living room PC running SteamOS, with a starting price of €1,040. Unlike Sony and Microsoft, Valve does not subsidize its hardware, passing production costs directly to consumers.

In conclusion, the upcoming price increase for Xbox consoles is a direct consequence of escalating memory costs that impact the gaming industry as a whole. As consumers, it might be wise to stay informed about price fluctuations and consider the implications of these changes when planning to purchase gaming consoles in the future.