News in Short

• Microsoft will increase Xbox console prices worldwide starting August 1.
• The company says soaring memory and storage costs are driving the price hike.
• Xbox is also discontinuing its 2TB console model.
• The move follows Apple’s recent hardware price increases, highlighting the growing impact of AI infrastructure demand.

Microsoft is increasing Xbox console prices across global markets beginning August 1. The company says higher memory and storage costs have made gaming hardware significantly more expensive to produce. Alongside the price hike, Microsoft is discontinuing its 2TB Xbox model and expanding financing options for buyers.

The announcement comes only hours after Apple raised prices across several hardware products, including Macs and iPads. Together, the two announcements show how rising AI infrastructure investments are affecting the cost of consumer electronics.

Why Are Prices Rising?

Microsoft says memory and console storage prices have climbed to more than two-and-a-half times previous levels. According to the company, these costs could double again by the fall of 2027 if current market trends continue.

The growing demand for advanced memory chips is largely tied to artificial intelligence. Technology companies continue to build larger AI models and data centers, increasing demand for high-performance memory and storage components. As supply tightens, manufacturers are paying more for the parts that power gaming consoles, laptops, and other devices.

This is also Microsoft’s second Xbox price increase within a year after raising prices in the United States last October.

Which Xbox Consoles Are Getting a Price Hike?

The biggest increase affects the 1TB Xbox Series X Disc model.

The Xbox Series S 512GB will increase from $399 to $499.

The Xbox Series S 1TB will rise from $449 to $599.

The Xbox Series X 1TB Digital Edition will move from $599 to $750.

The Xbox Series X 1TB Disc Edition will increase from $649 to $800.

Microsoft also confirmed that it is discontinuing the 2TB Xbox model, reducing one of its premium hardware options.

How Does This Compare With Sony and Nintendo?

Microsoft now joins Sony in raising console prices during the current generation. Sony has already increased PS5 Digital pricing compared with its original launch price, while Nintendo’s Switch 2 has seen relatively smaller adjustments.

However, continued pressure on memory and storage supply could force more gaming companies to review their pricing strategies in the coming years.

The broader trend suggests that AI-driven demand is beginning to influence products far beyond servers and enterprise computing.

Will Microsoft Offer More Affordable Buying Options?

To reduce the impact on customers, Microsoft plans to expand financing programs.

Eligible buyers purchasing Xbox hardware through Microsoft Stores will have greater access to buy now, pay later options. Customers shopping through Amazon can also qualify for up to 12 months of 0% APR financing on eligible purchases.

The company is also working on programs to offer previously owned consoles at lower prices, giving budget-conscious gamers another purchasing option.

Conclusion

The latest Xbox price increase reflects a much larger shift across the technology industry. As AI infrastructure continues to consume advanced memory and storage components, manufacturers are facing higher production costs. For consumers, that means gaming hardware is becoming more expensive, and Xbox is among the latest products to feel the impact.