Xbox raises console prices worldwide and drops 2TB models

Microsoft said it would raise Xbox console prices worldwide starting August 1, 2026, and the lineup got smaller at the same time: 2TB models were removed from sale.

The cheapest Xbox models were hit hardest: versions with 512GB of storage became $100 more expensive, while 1TB models went up by $150. Microsoft had already announced the price increase in late June, but the new figures only took effect on August 1.

In some regions, including Japan, the increase was even steeper and reached $200-$250. That means the gap between entry-level and higher-capacity models has grown noticeably, even before taking local pricing into account.

In the U.S., the Xbox Series S with 512GB of storage is now listed at $499.99, up from $399.99. The Xbox Series X with 1TB of storage and a disc drive now costs $799.99, compared with its previous $649.99 price.

Microsoft said the change was driven by rising component costs, especially storage and memory. In its statement, Xbox said it had hoped another price increase would not be necessary and added that console storage and memory prices have increased by more than 2.5x.

The company also said it had spent the last several months working with suppliers on options, but still expects another doubling by the fall of 2027. For buyers, the result is simple: Xbox consoles are more expensive across the board, and the 2TB option is no longer on sale.

Will the higher prices and the disappearance of the 2TB model make you hold off on buying an Xbox?