Microsoft has raised Xbox console prices by up to $150, effective August 1. The announcement came hours after Apple announced its own price increases.
The Xbox Series S 512GB is rising from $399 to $499, while the 1TB model climbs from $449 to $599. The Xbox Series X Digital is moving from $599 to $750. The disc version will cost $800—a $150 jump from its previous price.
Microsoft attributes the increases to memory and storage costs, which have risen to 2.5x previous levels due to demand for AI infrastructure. The company warned that prices could double by fall 2027.
Microsoft is discontinuing the 2TB model, forcing customers to either downgrade or pay more. The last price increase occurred in October of the previous year in the U.S.
To offset the increases, Microsoft is offering financing options and lower-priced refurbished consoles. Amazon shoppers can access up to 12 months of 0% APR financing, while Microsoft Store customers can use buy-now-pay-later on eligible hardware.
Sony has also raised PS5 prices, with the Digital model moving from $499 to $599. Nintendo's Switch 2 increase has been comparatively smaller.
The broader driver is the AI boom. As tech companies build large-scale AI systems, demand for advanced memory and storage chips has surged, straining supply chains and raising costs. Apple cited the same industry-wide pressure when it increased Mac and iPad prices.
Consumer reaction will determine uptake. Some gamers may delay purchases while others accept the new pricing.
