# Microsoft raises Xbox prices up to $150, announces layoffs

**Published:** 2026-06-29T19:39:25.422Z  
**Topic:** Microsoft  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/59638d84-7be3-4357-89c3-ffb89dcac9a9

Microsoft hikes Xbox console prices $100‑$150 worldwide, discontinues 2TB model and plans layoffs, signaling pressure from a memory‑chip cost crisis.

Microsoft will add $100 to 512 GB Xbox models and $150 to 1 TB versions on Aug. 1, while scrapping the 2 TB Series X, as the company prepares a round of layoffs [2]. The move underscores a component‑cost surge that threatens the console‑subsidy model and could reshape pricing across the gaming hardware market.

| At a glance | |
|---|---|
| Price hike | $100‑$150 per console |
| Effective date | Aug. 1, 2026 |
| Discontinued SKU | Xbox Series X 2 TB |
| Layoffs | Planned for next month |

## Why the price jump

Microsoft blames a “global components crisis” that has driven storage and memory prices up more than 2.5 times, with a further doubling expected by fall 2027 [2]. The company’s blog post cites these cost pressures as the primary driver, noting that the 512 GB Series S will rise from $400 to $500 and the 1 TB Series X disc edition from $650 to $800 [1]. This is the third increase in 13 months; previous hikes in May 2025 and October 2025 lifted the Series X from $500 to $600 and then to $650 respectively [3].

## Competitive context

Sony has already lifted PlayStation 5 prices, with the digital edition now at $600 and the PS5 Pro at $900, making the Xbox Series X the second‑most expensive current‑gen console [1]. Nintendo’s Switch 2 saw a modest $50 rise to $500, highlighting that Microsoft and Sony are bearing the brunt of the memory shortage [1]. The price escalation pushes Xbox consoles into the $800‑$900 range, overlapping with high‑end gaming PCs and eroding the historic $500 price point that defined console affordability for over a decade [3].

## What to watch

- **Layoff rollout** – Bloomberg reported the cuts will begin next month; monitor the exact timing and scale for clues on Microsoft’s cost‑reduction strategy [2].
- **Next earnings** – Q3 2026 results will reveal how the price hike and reduced hardware subsidies affect revenue and margins.
- **Rival response** – Track whether Sony or Nintendo adjust pricing or introduce new financing options to stay competitive.

The hikes expose a fundamental tension: as AI‑driven demand inflates memory costs, the traditional “sell consoles at a loss” model may become unsustainable, forcing Microsoft and its rivals to rethink pricing, financing, and product roadmaps.

## Sources
1. Forbes — [Following Apple, Microsoft Dramatically Hikes Xbox Prices, Again](https://www.forbes.com/sites/paultassi/2026/06/25/following-apple-microsoft-dramatically-hikes-xbox-prices-again/)
2. New York Post — [Xbox to raise console prices worldwide by up to $150 — citing global crisis](https://nypost.com/2026/06/25/business/xbox-to-raise-console-prices-worldwide-by-up-to-150-citing-global-crisis/)
3. The Next Web — [Microsoft raises Xbox console prices for the third time in 13 months, pushing the Series X to $800](https://thenextweb.com/news/microsoft-xbox-price-increase-third-time-memory-shortage-800)

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Cite as: TrendWatcher, "Microsoft raises Xbox prices up to $150, announces layoffs", https://www.trendwatcher.in/article/59638d84-7be3-4357-89c3-ffb89dcac9a9