Xbox Price Hike: Microsoft To Increase Costs by Up to USD 150 Globally From August 1; Here Is Why
Xbox is increasing global console prices by up to USD 150 from 1 August due to soaring memory and storage costs. With the 2TB model being discontinued, Microsoft joins other tech giants like Apple and Sony in raising prices to offset supply chain disruptions and the impact of AI-driven demand.
Microsoft has announced a worldwide price increase for its Xbox gaming consoles, effective 1 August 2026, due to the escalating global crisis in component supply. The company confirmed that rising costs for storage and memory chips, driven by intense industry-wide demand, have necessitated hardware price adjustments of up to USD 150.
New Console Pricing and Model Changes
Under the new pricing structure, Xbox 512GB models will see an increase of USD 100, while 1TB models will rise by USD 150. In addition to these price hikes, Microsoft has confirmed that it will discontinue its 2TB model. As per a report by Reuters, these changes reflect the company's struggle to manage a hardware supply chain crisis that has disproportionately impacted the gaming sector. Apple Refurbished Mac and iPad Prices Rise After New Product Price Increase.
Industry-Wide Component Crisis
The decision follows warnings from various sectors, including electronics, automotive, and retail, that the surge in demand for memory chips, particularly from the artificial intelligence industry's data centre expansion, would lead to significant price inflation for consumer goods. Xbox stated that console storage and memory costs have already risen by more than 2.5 times and are projected to double again by the autumn of 2027.
Broader Challenges in the Gaming Sector
This development follows a period of mounting pressure for Microsoft’s gaming division, which raised console prices twice during the previous year due to tariff-related costs and competitive market conditions. Furthermore, recent industry reports have indicated that Xbox is planning significant internal restructuring, including major layoffs and budget reductions across its marketing operations, as it navigates this period of economic uncertainty. Apple MacBook, Apple iPad Prices Hiked Amid Memory Shortage.
Summary Xbox is increasing global console prices by up to USD 150 from 1 August due to soaring memory and storage costs. With the 2TB model being discontinued, Microsoft joins other tech giants like Apple and Sony in raising prices to offset supply chain disruptions and the impact of AI-driven demand.
(The above story first appeared on LatestLY on Jun 25, 2026 11:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).