Microsoft has announced its second annual price increase for the Xbox console, effective August 1, 2026. Models with a 512 GB storage unit are priced up by $100, and 1 TB units are priced at $150. At the same time, the company is fully discontinuing production and sales of the older 2 TB model. The new recommended prices will be: Xbox Series S 512 GB - $499, Xbox Series S 1 TB - $599, Xbox Series X 1 TB - $800, and its digital version will cost $750.

The main reason for this move is a critical increase in memory and storage costs, which have already increased by 2.5 times, and by autumn 2027 they are expected to double. Microsoft representatives pointed out that, unlike PCs and smartphones, consoles are traditionally sold at a lower cost, with the difference being offset by sales of games and subscriptions. With component prices soaring, the company simply had no room to maneuver without changing retail prices.

To soften the blow to gamers' wallets, Microsoft is implementing a number of support measures. In branded stores and on Amazon, interest-free installment programs for up to 12 months are being expanded, and together with retail partners, a program is launched to exchange old consoles that will be resold at reduced prices. However, these measures are unlikely to completely assuage the frustration of fans facing the upcoming fall release of GTA VI with updated iron prices.