Microsoft Raises Xbox Prices by Up to $150, Introduces Financing and Trade-In Options
Microsoft announced that the price of its current‑generation Xbox Series X and Series S consoles will increase worldwide effective August 1, 2026. The 512‑GB models will rise by $100, while the 1‑TB models will increase by $150. The company also confirmed that the 2‑TB variant will be discontinued.
The price hike is the third adjustment in 15 months. In October 2025 Microsoft raised Xbox prices in the United States by $20 to $70, and the latest increase follows a steep rise in component costs. In a blog post Microsoft explained that “console storage and memory prices have increased by more than 2.5×, and we expect another doubling by the fall of 2027.” The company said the new pricing will affect users worldwide.
Under the new schedule the Xbox Series X with a disc drive and 1‑TB storage will cost $800, while the all‑digital version will be $750. The Series S will be priced at $500 for the 512‑GB model and $600 for the 1‑TB model, up from $400 and $450 respectively. The 2‑TB model, previously available for $900, will no longer be sold.
To mitigate the impact of the price increase, Microsoft has rolled out several options. The company said it is working with partners to offer a “Buy Now, Pay Later” program that would provide 0 % APR financing for up to 12 months. Microsoft also announced trade‑in programs that allow customers to exchange older consoles for cash or store credit, with the returned units being refurbished and sold at lower prices. The refurbished consoles will be available through Microsoft Stores.
The price hike has sparked discussion among gamers. Posts on Reddit noted that the cost of consoles is making the hobby feel like a luxury investment. One user wrote, “Gaming is just going to be a nearly impossible hobby to get into for the average person.” Another user expressed concern about the upcoming launch of a limited‑edition Xbox Series X25 in November, warning that scalpers could drive up resale prices.
Microsoft’s decision comes amid a broader trend of rising memory and storage costs across the consumer electronics industry. The company’s statement that component prices have more than doubled suggests that similar price adjustments may occur in the future. Analysts note that the discontinuation of the 2‑TB model and the introduction of financing options could signal a shift toward more flexible purchasing models.
In summary, Microsoft will raise Xbox Series X and Series S prices by $100–$150 effective August 1, 2026, and will discontinue the 2‑TB model. The company is offering financing, trade‑in, and refurbished options to soften the blow. The move reflects escalating component costs and may influence consumer perceptions of console affordability.
