Xbox to raise prices again in August 2026, discontinue 2TB model

Microsoft announced a global price increase for Xbox consoles starting August 1, 2026, with increases of up to $150 and the discontinuation of the 2TB model. The Xbox Series X 1TB will see the largest jump, though reported final prices vary between sources.

Price increases

Reports disagree on the exact new price for the Series X 1TB: Excelsior México states it will reach $750 Source: excelsiormx, while Infobae reports $799.99 Source: infobae. The Series S 512GB is expected to cost $499.99 Source: infobae. Microsoft will stop selling the Series X 2TB Galaxy Black Special Edition Source: excelsiormx.

Reasons

Microsoft attributes the hike to a global component shortage, particularly memory and storage costs which have risen over 2.5 times and may double again by 2027 Source: infobae. The rise of AI has led manufacturers like Micron and SK Hynix to prioritize high-bandwidth memory for servers Source: excelsiormx.

Impact and mitigation

This is the third price increase since 2025, making the Series X $300 more than its launch price Source: infobae. November 2025 saw the worst sales month for consoles in US history, with average hardware price nearly doubling since 2019 Source: infobae. Microsoft is offering buy-now-pay-later plans and refurbished discounts up to $100 to ease the burden Source: infobae.