Microsoft announced worldwide price increases for Xbox Series X and Series S consoles effective Aug. 1, 2026 [5].
The move signals a tightening hardware market as the company struggles with supply chain constraints. These increases place a higher financial burden on consumers during a period of continued volatility in the electronics sector.
According to the company, the price of 512 GB models will increase by $100 [1]. Specifically, the Xbox Series S 512 GB model will rise to $499.99 from its previous price of $399.99 [3]. For one TB models, the price increase will be $150 [2].
Microsoft said the price hikes were due to a global AI component shortage [6]. This crisis has forced the company to adjust its hardware strategy, a shift that includes the discontinuation of the two TB Xbox Series X model [4].
Reports on the frequency of these adjustments vary. Some sources said this is the third time Xbox has raised console prices, while others said it is the second increase in less than a year.
The company did not provide a specific timeline for when the two TB model will be completely removed from retail shelves, but the price changes for the remaining hardware will apply globally [5].
“Price increases for Xbox Series X and Series S consoles take effect Aug. 1, 2026.”
The decision to raise prices and discontinue a high-capacity model suggests that the 'AI boom' is cannibalizing the supply of semiconductors used in traditional gaming hardware. By increasing the cost of entry-level consoles and removing the 2 TB option, Microsoft is prioritizing profit margins and resource allocation over market penetration at a time when component costs are surging.
