TL;DR: The entry-level Xbox Series S console with 512GB of storage will rise from $399 to $499, while the 1TB model will go from $449 to $599. Meanwhile, the price of the digital-only 1TB Xbox Series X will increase from $599 to $749, the standard disc-drive model jumps from $649 to $799, and the 2TB variant will be discontinued.
Mere days after reports of mass layoffs at Microsoft-owned game development studios, things have gone from bad to worse for Xbox. In a few weeks, the company's game consoles will receive their highest-ever price increases, marking the third round in barely over a year.
The last two price hikes, both occurring in 2025, made the Xbox Series S and X between $20 and $130 more expensive. Microsoft blamed tariffs and inflation back then, but rising memory costs – partly caused by Microsoft – have now prompted the company to raise the price of the 512GB Series S by $100 and all 1TB consoles by $150. The cheapest Series S model now carries the same price that the standard Series X launched with in 2020.
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To further highlight how distorted the console market has become, Microsoft is also expanding the conditions under which shoppers can purchase an Xbox through short-term, interest-free installments. The company is also working with Amazon to offer 0% APR financing on the consoles for up to 12 months and striving to increase the availability of refurbished units, which are currently up to $100 off.
As Microsoft and other companies drive the AI boom, DRAM production capacity has been diverted to AI GPUs that haven't been built yet – which will power data centers that may or may not be built. In its price-hike announcement, the Xbox manufacturer stated that it is now paying two and a half times as much for memory, presumably compared to late last year, and expects its costs to double again by late 2027. The news of layoffs and price hikes will likely not help Xbox hardware sales numbers, which showed yet another steep decline just weeks ago.
Sony also previously raised the price of the PlayStation 5, bringing the 2TB PS5 Pro to a staggering $899, and the Nintendo Switch 2 received a minor hike earlier this year. Memory costs were also blamed when Valve unveiled its Steam Machine mini PC at approximately $300 above the company's desired launch price. Even Apple could not escape the so-called RAMpocalypse, having just raised the prices of all of its tablets and PCs by approximately 20%.
The third Xbox price hike in 15 months raises all models by at least $100
