Xbox Price Hike: Rising pricing is a reality now, and it's not just tech giants like Apple that are increasing their prices, but it is spreading across the industry, and now one more player has joined the bandwagon: Microsoft. Apple has increased prices across various products in its portfolio, like Macs and iPads and many others. For now iPhones have been spared, but you might soon see that happen too. Now Microsoft has also increased the prices of its Xbox consoles. The reason that the industry players are citing is the same: it's an acute shortage of memory chips.
The company says that storage and memory chip prices have skyrocketed and cost 2.5 times more, and the fears of it doubling again by the fall of 2027 still loom. The company has said, "The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles." The company has also noted that they usually don't sell consoles at a profit but less than what it actually costs them to make the consoles. Although with this price hike, Microsoft has also announced new programmes and trade-ins to make it more affordable and easier to buy consoles.
What will the Xbox cost now?
The new price hike will take effect from August 1, 2026, and will happen globally. For the 512 GB model the price hike will be to the tune of $100, and for the bigger storage 1 TB model the price rise will be $150, and this also might be the end of the 2 TB models. To phase in the change gradually, Microsoft has shared some programmes through which gamers will be able to buy these consoles much more easily. Customers can use buy now, pay later plans and split their payments into short-term instalments that are interest-free. The company is also looking forward to working with financing partners so that it can provide 0 per cent APR financing for a period of up to 12 months on qualified Xbox software.
A trade-in facility will also be in place where gamers can trade their older Xbox consoles for a new one with authorised retailers for store credit or cash. The traded-in console will then be sold at a price lower than its usual.
Microsoft is of the opinion that despite rising prices, the Xbox Series S will still be the best and cheapest option when it comes to consoles, especially for gamers looking forward to getting their hands on the latest upcoming releases. The company expressed that "Xbox Series S remains the lowest-cost way for console players to enjoy the biggest hits this year, including Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved, and Madden NFL 27".