Xbox consoles are getting a third price increase in roughly 13 months. Effective August 1, the costs of certain Xbox models are being raised worldwide by no less than $100.
An Xbox Wire post states that the 512 GB models of Xbox will increase in price by $100 and the 1 TB models by $150 in the U.S. The 2 TB Xbox Series X model is also being discontinued.
Xbox does not list the new prices, but this update would indicate that the affected consoles will soon be sold at the following prices:
Xbox Series S 512 GB – $499.99 (currently $399.99)
Xbox Series S 1TB – $599.99 (currently $449.99)
Xbox Series X Digital 1 TB – $749.99 (currently $599.99)
Xbox Series X 1 TB – $799.99 (currently $649.99)
It’s worth noting that Xbox recently revealed a limited 25th anniversary edition of the Series X with 1 TB of storage, launching in November. The price of this console has not been revealed, but one would have to imagine it, too, will be priced at an even higher premium.
This most recent price adjustment follows previous price hikes in May and October of last year. Xbox appears to acknowledge the frustration these changes will likely create for consumers and cites the ongoing component crisis as the primary factor for the price adjustments. The company even says it expects this supply problem to worsen by the fall of 2027. Their message reads,
“Last October, we increased XBOX console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
Xbox is far from alone in this situation, as both Sony and Nintendo have raised prices for the PlayStation 5 and Switch 2, respectively, over the past year due to similar reasons. Valve has also significantly raised the price of the Steam Deck, and its upcoming Steam Machine is priced at over $1,000 due to the current economic conditions surrounding tech.
The news is another unfortunate blow for Xbox, which has made headlines in recent weeks due to reports of significant layoffs set to hit the gaming division in the coming weeks, if not days. Following the announcement of an Xbox reset by CEO Asha Sharma and chief content officer Matt Booty, several Xbox-owned studios are reportedly at risk of being closed or spun off. Compulsion Games, Double Fine, and Ninja Theory have reportedly been negotiating their future, with further reports indicating Xbox unveiled Ninja Theory’s next game, Senua, during Summer Game Fest to attract a potential buyer for the studio.