Microsoft raises Xbox prices as component costs keep climbing

Microsoft said on Thursday that it will raise prices for Xbox consoles, citing higher component costs, just hours after Apple announced price increases for MacBook and iPad devices. According to CNBC, the new prices take effect on August 1.

The Xbox Series S with 512 gigabytes of storage will rise by $100 to about $500. Versions with 1 terabyte of storage will cost $150 more, and the base Xbox Series X will start at about $750. Microsoft also said the 2-terabyte Xbox Series X model, launched in 2024, will be discontinued and no longer sold.

In a blog post, the company said it had already raised Xbox prices in October by $20 to $70 in the U.S., and had hoped another increase would not be necessary. It added that storage and memory prices in consoles have risen by more than 2.5 times, and are expected to double again by autumn 2027.

Microsoft said the entire consumer electronics industry is facing a parts crisis, but consoles are being hit especially hard because they are usually sold at no profit, and sometimes below manufacturing cost. The pressure comes as memory makers such as Micron and SK Hynix face production limits and prioritize high-bandwidth memory for AI infrastructure, including Nvidia graphics processors. Apple also raised prices Thursday, after Tim Cook told The Wall Street Journal that price increases had become unavoidable.