Microsoft will raise the prices of its Xbox consoles worldwide effective August 1, 2026. Under the new pricing, the 512GB model will increase by $100 and the 1TB model by $150. The 2TB model will be discontinued.

Xbox console prices were previously raised by $20 to $70 in the U.S. last October. Microsoft stated that it had spent the past several months discussing various measures with suppliers to avoid further price hikes, but attributed the decision to a more than 2.5-fold increase in the cost of console storage and memory components.

According to Microsoft, the cost of console storage and memory has risen by more than 2.5 times and is expected to double again by the fall of 2027. Microsoft noted that while the current component crisis is affecting the entire consumer electronics industry, the console market is hit particularly hard because, unlike other consumer devices, consoles are often sold at prices lower than their manufacturing costs.

Meanwhile, Sony and Nintendo have also announced price increases for their consoles due to global market conditions. The price of the Nintendo Switch 1 was raised on May 25, and the price of the Switch 2 is also set to change this coming September. Sony also increased the price of the PS5 last May.