Xbox follows Apple with price increases 

Just a few hours after Apple announced price increases across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting more expensive. The company also announced that it’s discontinuing its 2TB model.

Starting August 1, Xbox console prices will increase worldwide. The 512GB models will cost $100 more, while the 1TB versions are set to rise by $150. 

Price changes are as follows: 

• Xbox Series S 512GB is increasing from $399 to $499
• Xbox Series S 1TB is increasing from $449 to $599
• Xbox Series X 1TB Digital is increasing from $599 to $750
• Xbox Series X 1TB Disc is increasing from $649 to $800

The company says the increases are being driven by memory and console storage prices rising, with costs more than 2.5 times higher than previous levels. Microsoft warned that these prices could double by the fall of 2027. The move comes less than a year after the company raised Xbox prices in the U.S. last October.

The announcement follows Apple’s own round of price hikes affecting products such as Macs and iPads. Apple cited the same industry-wide pressures, pointing to soaring memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.

Together, the back-to-back announcements underscore how much the AI boom is impacting the price of everyday electronics. As technology companies invest heavily in larger AI systems, demand for advanced memory and storage chips has surged, tightening supply chains and pushing costs higher across the industry.

Microsoft attempted to soften the blow by highlighting financing options and plans to expand access to lower-cost hardware. In its announcement, the company said it is “working on new programs to provide previously played consoles at lower prices.”

Customers purchasing eligible Xbox hardware through Microsoft Stores will have greater access to Buy Now, Pay Later programs, while Amazon shoppers can qualify for up to 12 months of 0% APR financing on eligible purchases.

Additionally, Microsoft now joins Sony in asking gamers to pay more, with PS5 digital now costing significantly more than it did at launch, rising from $499 to $599. Meanwhile, Nintendo’s increase for the Switch 2 has been comparatively modest, but the rival may face pressure to raise prices further in the future.