Microsoft Hikes Xbox Series Console Prices for Third Time, Series X Hits $800

Microsoft will raise prices on its Xbox Series X and S consoles effective August 1, marking the third price increase in two years. The hikes range from $100 to $150 depending on the model, with the 1TB Xbox Series X with a disc drive now costing $800.

The Xbox Series X with a disc drive reaches $800, up $300 from its original $500 launch price in November 2020. The 512GB Series X, a digital-only model, rises to $650. The 512GB Series S jumps to $400, while the 1TB Series S climbs to $500. Microsoft has also discontinued the 2TB Series X model.

Third Price Hike in Two Years

This is the third time Microsoft has increased Xbox console prices since 2025. The previous two hikes occurred roughly six months apart. The company attributes the latest increase to ongoing component shortages and rising manufacturing costs, particularly for memory and processors.

• 1TB Xbox Series X (disc): $800 (up $150)
• 512GB Xbox Series X (digital): $650 (up $100)
• 1TB Xbox Series S: $500 (up $100)
• 512GB Xbox Series S: $400 (up $100)
• 2TB Xbox Series X: discontinued

Component Costs and Market Impact

Analysts note that Microsoft's own supply chain decisions have contributed to the cost pressures. The company has aggressively competed for NAND flash and DRAM allocations, driving up prices industry-wide. The price hikes come ahead of the highly anticipated 'GTA VI' launch, which could have boosted console sales. Microsoft is also introducing a 'Buy Now, Pay Later' financing option for Xbox consoles, likely to soften the impact on consumers.

With Sony's PlayStation 5 remaining at its launch price, the widening gap could affect Xbox's market share. The next step for Microsoft will be to see whether the price increases slow demand or if the financing option offsets sticker shock. The company has not announced any plans for a mid-generation refresh or a new console.