This is the third time. Not a rumour, not a leak — Microsoft has officially confirmed another Xbox price increase, effective August 1, 2026, just five weeks away. Storage and memory costs have more than doubled since October, and Microsoft says they’re still expecting another doubling by Fall 2027. If you’ve been sitting on the fence about buying a console, the window to act at current prices is shrinking fast.
Table of Contents
New US Pricing
| Console | Old Price | New Price | Increase |
|---|---|---|---|
| Xbox Series S (512GB) | $399.99 | $499.99 | +$100 |
| Xbox Series S (1TB) | $449.99 | $549.99 | +$100 |
| Xbox Series X Digital | $599.99 | $749.99 | +$150 |
| Xbox Series X | $649.99 | $799.99 | +$150 |
| Xbox Series X 2TB | $799.99 | Discontinued | — |
The 2TB model is being retired entirely. The Series X now starts at $800 — that’s $300 more than its 2020 launch price. The Series S, once the most affordable next-gen console at $299.99, has nearly doubled in four and a half years.
What Microsoft Actually Said
In its official Xbox Wire post, Microsoft confirmed: “Console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit but instead for less than they cost to make.”
That last line matters. Unlike smartphones, where manufacturers spread component costs across premium displays, cameras, and software services, a console’s value is almost entirely in its storage, memory, and processor — the exact three things that have surged in price due to AI chip demand.
What Microsoft Is Doing to Soften the Blow
| Mitigation | Detail |
|---|---|
| Buy Now, Pay Later | Interest-free instalments via Microsoft Store |
| Amazon 0% APR | Up to 12-month financing on eligible hardware |
| Previously Played Consoles | Retail trade-in and resale programmes being expanded |
| Certified Refurbished | Available on Microsoft Store at up to $100 off MSRP |
The GTA VI Timing Problem
This hike lands in the worst possible window for Xbox: the price increase arrives just weeks before GTA VI launches in November, which was expected to be one of the biggest console sales catalysts of the generation. Anyone who was planning to buy an Xbox specifically for GTA VI now faces an $800 entry point for the full disc version — a number that will send many buyers straight to PS5 comparisons. Our GTA VI India pricing and pre-order guide breaks down exactly what the game costs across editions if you’re planning around a console purchase.
What This Means for Indian Buyers
India pricing hasn’t been confirmed yet, but given Microsoft’s “worldwide” language and the pattern from previous hikes, an adjustment is coming. The Xbox Series S was priced at ₹38,990 in India as recently as late 2025 — already a significant climb from its ₹34,990 launch price.
Another meaningful increase would push the entry point into territory that changes the entire value conversation, especially against our best gaming consoles guide for Indian buyers where the Series S’s affordability was its strongest argument. On top of this, Xbox Game Pass also saw major price restructuring in India in 2025 — so the total cost of being an Xbox gamer in India keeps climbing on two fronts simultaneously.
The Bottom Line
This isn’t the last hike — Microsoft essentially said so, flagging another memory cost doubling by late 2027. If you want an Xbox at current prices, August 1 is the hard deadline. If you’re undecided between platforms, that same ₹40,000-50,000 range will start looking very different once Indian pricing is updated.
Source: Xbox Wire official post; reported by VGC and Kotaku.
