Microsoft Announces Price Increase for Xbox Consoles
In a recent development, Microsoft has confirmed a global price increase for its Xbox consoles, which will take effect on August 1, 2026.
The adjustments apply to the 512 GB and 1 TB models, while the company has decided to phase out its 2 TB variant altogether.
This latest escalation in pricing stems from rising manufacturing costs associated with gaming consoles. Microsoft had previously raised prices for Xbox consoles in the US by $20 to $70 in October 2025, expressing hope that no further increases would be necessary.
Under the new pricing structure, the 512 GB Xbox consoles will see a $100 price surge globally, while the 1 TB models will be subject to a $150 increase.
According to Microsoft, extensive negotiations with suppliers over recent months have taken place. However, the expenses related to storage and memory components have surged more than 2.5 times and are anticipated to double again by fall 2027.
The tech giant emphasized that the entire consumer electronics market is grappling with shortages and escalating costs for critical components.
Yet, it noted that gaming consoles have encountered more severe challenges than many other electronic devices.
“Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit; they are often priced below production costs,” the company explained.
In tandem with the price increase, Microsoft has introduced several initiatives aimed at enhancing affordability for Xbox consoles:
- Expansion of Buy Now, Pay Later options through Microsoft Stores, enabling eligible customers to purchase Xbox hardware through short-term, interest-free installments.
- Collaboration with financing partners to provide 0% APR financing for up to 12 months on select Xbox hardware purchases.
- Launch of a Previously Played Consoles program in partnership with retailers, allowing customers to trade in their old Xbox consoles for cash or store credit. These returned devices will be refurbished and resold at reduced prices.
- Availability of Xbox Certified Refurbished Consoles through Microsoft Stores, discounted by as much as $100 off the manufacturer’s suggested retail price (MSRP).
Microsoft also reaffirmed that the Xbox Series S remains its most economically accessible gaming console.
It spotlighted several forthcoming titles, 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 as notable games set to arrive on the platform.
Source link: Cnbctv18.com.
