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Microsoft will add $100 to 512 GB Xbox models and $150 to 1 TB versions on Aug 1, citing a 2.5× rise in storage costs and a looming component crunch.
Microsoft announced on June 25 that Xbox consoles will cost $100 more for 512 GB models and $150 more for 1 TB versions starting Aug 1, while the 2 TB variant will be discontinued, reflecting a component‑price surge that threatens profit margins on consoles [2].
| At a glance | |
|---|---|
| Price hike | +$100 (512 GB) / +$150 (1 TB) |
| Effective date | Aug 1, 2026 |
| Discontinued SKU | 2 TB model |
| Launch price (Series X) | $800 (up $300 since 2020) |
Microsoft said storage and memory component prices have risen more than 2.5 times and could double again by fall 2027, forcing the third price increase for its current‑generation Xbox since May 2025 [2]. The company added that consoles are typically sold below cost, making it harder to absorb component inflation compared with phones or laptops [2]. The same shortage is affecting peers: Apple raised prices on Macs, iPads and Vision Pro, and Sony and Nintendo have also lifted PlayStation and Switch 2 prices, respectively [1][5].
The new pricing pushes the Xbox Series X to $799.99 for the disc‑drive version and $749.99 for the disc‑less model, a $300 increase over its 2020 launch price of $499 [3]. Sony’s PlayStation line has seen similar hikes, and Nintendo’s upcoming Switch 2 is slated at a $500 suggested retail price [5]. With consoles increasingly priced as premium goods, the market is shifting from a volume‑driven model to one where hardware margins are squeezed, potentially accelerating Microsoft’s focus on subscription services like Xbox Game Pass to sustain revenue.
The price hikes underscore how AI‑driven demand for memory chips is reshaping the gaming hardware market, raising questions about the long‑term viability of selling consoles at a loss and the extent to which subscription services will become the primary profit engine.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 5 outlets · Jun 26, 2026 · How we report
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