Microsoft Hikes Xbox Prices Globally For The Third Time In Two Years; 2TB Model Discontinued

Microsoft has announced another global price increase for its Xbox Series X and Series S consoles, effective August 1. The company has also confirmed it is discontinuing the 2TB Xbox Series X model from its lineup.

How much more will Xbox consoles cost?

According to an Xbox Wire post, prices will increase by $100 for 512GB models and $150 for 1TB models worldwide, with the 2TB model being sunset entirely.

Bullet points on the price hike pattern:

- 512GB models (Xbox Series S): Up by $100

- 1TB models: Up by $150

- 2TB model: Discontinued altogether

- Effective date: August 1, 2026, globally

- This is the third Xbox price hike since 2025 - the first came in May 2025, widely linked to tariffs, and the second in September 2025, which Microsoft attributed to 'changes in the macroeconomic environment.' That second hike had pushed the now-discontinued 2TB model to $800.

Why are prices rising again?

Microsoft said it had hoped to avoid a fresh increase, but storage and memory component costs have risen roughly 2.5 times since the last hike in October, with another doubling expected by the fall of 2027. The company noted the entire consumer electronics sector is grappling with a components crunch, though consoles are hit harder since they are typically sold near or below manufacturing cost rather than for profit.

Reports have linked the squeeze to surging demand for memory chips driven by the AI industry's datacenter buildout, a pressure that has also pushed Apple to raise iPad and MacBook prices and Sony to increase PS5 prices twice in the past year.

Subheading: New affordability measures

Alongside the hike, Microsoft is rolling out:

- Buy Now, Pay Later options for eligible Xbox hardware bought via Microsoft Stores, split into short-term, interest-free installments.

- 0 percent APR financing for up to 12 months through select financing partners.

- Expanded trade-in programs with retail partners, letting customers swap older consoles for cash or store credit.

- Xbox Certified Refurbished units continuing to be sold with discounts of up to $100 off MSRP.

Is the price hike reflecting in India?

As of now, Microsoft and Xbox India have not published official revised India pricing on their India storefronts - the company's announcement so far covers global/US dollar figures effective August 1.

Currently, official India list prices stand at:

- Xbox Series S (512GB): Rs. 34,990

- Xbox Series X (1TB): Rs. 55,990 (with retailer prices ranging roughly Rs. 50,000–56,000 depending on offers)

Given that Microsoft has confirmed the increase applies 'worldwide,' an India price revision is expected to follow, though Indian retail pricing typically factors in import duty, GST, and distributor markups on top of the dollar-denominated hike, meaning the rupee increase may not be a straight currency conversion of the $100–$150 hike. Some industry estimates put a likely India increase in the Rs. 8,000–13,000 range depending on the variant, but this remains speculative pending an official confirmation from Microsoft India or an updated listing on the Xbox India store.