Xbox Series X/S is getting a major price increase, as Microsoft becomes the latest company to blame skyrocketing RAM and storage costs

Microsoft announced significant price increases for Xbox Series X|S consoles effective August 1, 2026, marking the second major hike within a year. The 512GB models will increase by $100, while 1TB models will rise by $150, bringing the Series S to a starting price of $499.99 and the Series X to $749.99 for the digital edition and $799.99 for the disc version. The 2TB model is being discontinued entirely.

The company attributes the increases to skyrocketing component costs, specifically citing a 2.5x increase in console storage and memory prices. Microsoft warned that these costs are expected to double again by Fall 2027, suggesting further price hikes may be inevitable. This marks the second price increase in less than a year, following a $20–$70 increase announced in October 2025. Microsoft stated it had exhausted supplier negotiations without finding viable alternatives.

The price surges are part of a broader industry trend, as Sony and Nintendo have also raised console prices during this generation. The increases have drawn criticism for eroding the value proposition of the Series S, which launched at $299 as an affordable entry point. The console now costs as much as the Series X did at launch in 2020—a 67% price increase over nearly six years, contrary to typical hardware depreciation patterns. Industry observers note that AI’s demand for memory and storage components has exacerbated component shortages and driven costs upward, creating additional pressure on console manufacturers.

Xbox Series X/S is getting a major price increase, as Microsoft becomes the latest company to blame skyrocketing RAM and storage costs

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