Microsoft’s XBOX game console brand announces it will add more game consoles Based on global prices from August 1, 2026 Official company statement. The price of the 512 GB XBOX console model will increase by $100. The price of the 1 TB XBOX console model will increase by $150. XBOX will also discontinue its 2 TB console model.
this is not the first price increase. XBOX has increased the US console price by US$20 to US$70 in October 2025. Xbox said it wanted to avoid another round of price increases and had spent months working with suppliers to find other solutions. However, the company said the cost of important console components, especially storage and memory components, has risen significantly. According to XBOX, storage and memory prices have increased by more than 2.5 times from previous levels.
The company also expects the price of these parts to double again by the fall of 2027. XBOX stated that the entire consumer electronics industry is facing a major parts crisis. The company said rising component costs were affecting makers of cellphones, computers, speakers and other electronic devices. XBOX says this affects consoles particularly hard.
The company explains that unlike many other electronic products, game consoles are often sold at very low profit margins, even below the cost of manufacturing. XBOX says that because of this business model, higher component prices make it harder for console manufacturers to absorb the additional costs.
New plan announced to help buyers
In addition to the price increase, XBOX also announced several plans aimed at making the console more affordable. The company is expanding its “buy now, pay later” option for eligible XBOX hardware purchases through the Microsoft Store. According to XBOX, this will allow customers to break payments into smaller short-term installments.
XBOX says these installments will be interest-free on qualifying purchases. The company also announced new financing options for eligible Xbox hardware purchased through: Amazon. Buyers can finance with 0% APR for up to 12 months. XBOX says this financing option is designed to lower monthly payments and provide customers with greater budget flexibility.
Also read: Apple raises prices up to 42%: See full price list for MacBook, iPad, Vision Pro and HomePod devices
Trade-in and Refurbished Console Programs
XBOX says it’s working with retail partners on a program to sell previously played consoles at lower prices. Under the program, players who want to upgrade or outgrow their consoles can trade them in at participating retailers. Customers will receive cash or store credit for eligible trade-ins.
The trade-in consoles are then resold to other customers at a lower price. XBOX also highlighted its Certified Refurbished Console program. According to the company, certified refurbished XBOX consoles are available for purchase through the Microsoft Store. These refurbished consoles are available for up to $100 less than the manufacturer’s suggested retail price (MSRP). Despite the price increase, XBOX says the XBOX Series S remains its lowest-cost console option.
