Microsoft is raising XBOX console prices worldwide starting August 1, 2026, citing higher component costs.
The 512GB XBOX will go up by $100, while the 1TB model will increase by $150. The 2TB version will be discontinued. Microsoft explained that storage and memory costs have jumped more than 2.5x, with another spike expected by late 2027. Unlike other consumer electronics, consoles are often sold at a loss, making the adjustment necessary.
To soften the impact, Microsoft is rolling out several programs. These include Buy Now, Pay Later with interest-free installments, 0% financing for up to 12 months, and trade-in options for previously played consoles. Certified refurbished units will also be available, priced up to $100 less than MSRP.
For gamers looking at affordability, the XBOX Series S remains the entry-level option. It will continue to support upcoming titles like Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, GTA VI, Halo: Campaign Evolved, and Madden NFL 27.
Price hikes are becoming common across the electronics industry. Apple recently raised the prices of MacBooks and iPads, and now POCO has followed with higher costs for its smartphones in the Philippines.
Also Read: Global smartphone average selling price increase in 2026
This move shows the growing challenge of rising hardware costs. The question now is whether financing and trade-in programs will be enough to keep consoles accessible for players worldwide.
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