Microsoft axes another Xbox console before sweeping price increases

Another Xbox console is gone as Microsoft hikes Series prices this summer
HARDWARE NEWS manhkbrady - Jun 27, 2026, 10:00 - 17 comments

Gaming continues to get more expensive, and Microsoft is the latest company to announce a major hardware price increase. Following Sony's PlayStation 5 price hikes earlier this year, Xbox consoles are now becoming significantly more expensive worldwide, with increases of up to $250 depending on the model.

Microsoft confirmed that the new pricing will take effect on August 1, 2026, while also announcing that the 2TB Xbox Series X Galaxy Black Edition is being discontinued. The updated US pricing is as follows:

512GB Xbox Series S: $399.99 → $499.99
1TB Xbox Series S: $449.99 → $599.99
1TB Xbox Series X All-Digital: $599.99 → $749.99
1TB Xbox Series X (Disc Drive): $649.99 → $899.99

Although the XBOX Wire blog post announcing the decision only listed US Dollar amounts, it did confirm that the pricing changes will impact purchases globally. This marks the third Xbox price increase during the current console generation, following previous hikes in May 2025 and October 2025.

An Xbox Series X console and controller are displayed on a table. The console is black and rectangular, with the controller in the foreground.

According to Microsoft, the main driver behind the increases is the continued surge in memory and storage costs. The company says demand from the AI industry has placed enormous pressure on the semiconductor supply chain, making DRAM and NAND flash significantly more expensive than they were just a few years ago.

The higher manufacturing costs have also renewed questions about Microsoft's long-term hardware strategy. Xbox consoles have traditionally been sold at a loss, with Microsoft relying on software and services to generate profit. With these latest price increases, the company may finally be moving toward making at least some profit on console hardware itself.

The announcement comes as gaming hardware across the industry continues to climb in price. Nintendo recently increased the price of the Switch 2, Valve's upcoming Steam Machine starts at $1,049, and premium editions of major games such as Grand Theft Auto VI are becoming increasingly popular despite their higher price tags. If component costs continue rising as expected, gamers may have to prepare for even more expensive hardware over the next few years.

As always, for the latest news on hardware launches, industry trends, and developments across the gaming world, be sure to follow our dedicated gaming and hardware coverage.

manhkbrady

manhkbrady

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A writer, and a full-time Tetris min-maxing player. Do you know that rhythm games are a form of human benchmarking?

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neekimyong
neekimyong
Jun 29, 2026, 00:30 on dlcompare.com
Microsoft blames AI-driven memory costs but they are one of the biggest AI buyers themselves. Discontinuing the 2TB model right before GTA VI launch is odd timing.
6a41377d8aef1_stev_sista
6a41377d8aef1_stev_sista
Jun 28, 2026, 17:04 on dlcompare.fr
Au final, jouer sur PC reviendra moins chére bientôt, on est déjà a la limite d'un prix similaire à un pc d'entrée de gamme
Ultimately, PC gaming will soon be cheaper; we're already approaching a price similar to an entry-level PC.
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VicksB
VicksB
Jun 28, 2026, 09:49 on dlcompare.es
La subida es dura, aunque seguramente habrá quien la acepte por no tener otra alternativa si quiere una consola cerrada y sencilla para jugar.
The price increase is steep, although there will surely be those who accept it because they have no other alternative if they want a closed and simple console for gaming.
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PhoenixAdi
PhoenixAdi
Jun 28, 2026, 09:27 on dlcompare.es
Lo peor es que la Series S nació como la consola asequible y ahora se acerca a precios que ya no se sienten tan accesibles. Ahí Xbox pierde parte de su gracia.
The worst part is that the Series S was launched as the affordable console, and now it's approaching prices that no longer feel so accessible. That's where Xbox loses some of its appeal.
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bonneinne
bonneinne
Jun 28, 2026, 09:23 on dlcompare.es
Cada vez cuesta más entrar en consola nueva generación. Xbox ya no parece la opción “barata” que vendían al principio, y eso le va a doler a mucha gente.
It's getting harder and harder to get into the new generation of consoles. Xbox no longer seems like the "cheap" option it was initially marketed to be, and that's going to hurt a lot of people.
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Dlogger
Dlogger
Jun 28, 2026, 09:20 on dlcompare.es
Menos los salarios, que no suben, aquí sube todo de precio. Jugar videojuegos va a ser un lujo en el futuro
Except for salaries, which aren't going up, everything here is getting more expensive. Playing video games is going to be a luxury in the future.
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corvus_haugland
corvus_haugland
Jun 28, 2026, 09:18 on dlcompare.fr
Ce n'est pas uniquement un problème Microsoft. Sony a aussi augmenté les prix de la PS5 dans plusieurs régions, ce qui montre que toute l'industrie est sous pression. Là où Microsoft prend un risque, c'est que les ventes de Xbox sont déjà derrière celles de PlayStation. Augmenter encore le prix pourrait rendre la console encore moins compétitive auprès des nouveaux acheteurs
This isn't just a Microsoft problem. Sony has also raised PS5 prices in several regions, showing that the entire industry is under pressure. Microsoft's risk lies in the fact that Xbox sales are already lagging behind PlayStation's. Further price increases could make the console even less competitive for new buyers.
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tohdimvk
tohdimvk
Jun 28, 2026, 08:35 on dlcompare.de
Wir sind weit von der Zeit entfernt, als eine Konsole im Laufe der Jahre an Preis sank. Heute erleben wir das Gegenteil: Je weiter die Generation voranschreitet, desto teurer wird sie
We are long gone from the days when a console's price decreased over the years. Today we see the opposite: the further the generation progresses, the more expensive it becomes.
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Milox
Milox
Jun 28, 2026, 07:58 on dlcompare.fr
Beaucoup critiquent Microsoft, mais le problème touche toute l'industrie. Si les coûts de la mémoire et du stockage augmentent autant, il est logique que les prix finissent par suivre. Sony et d'autres fabricants ont aussi augmenté leurs tarifs
Many criticize Microsoft, but the problem affects the entire industry. If memory and storage costs increase so dramatically, it's logical that prices will eventually follow. Sony and other manufacturers have also raised their prices.
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Nachos
Nachos
Jun 28, 2026, 07:16 on dlcompare.fr
Au final, Microsoft semble miser davantage sur le Game Pass et les services que sur la vente de consoles. Si le matériel devient aussi cher, autant jouer sur PC ou en cloud pour ceux qui en ont la possibilité
Ultimately, Microsoft seems to be focusing more on Game Pass and services than on console sales. If the hardware becomes so expensive, those who can afford it might as well play on PC or via cloud services.
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