Microsoft has announced another worldwide price increase for the Xbox Series X and Series S, set to take effect from August 1, 2026. The 512GB model will rise by $100, while the 1TB consoles will increase by $150. In the US, the 512GB Xbox Series S will cost $499.99, the 1TB Series S $599.99, the digital Xbox Series X $749.99, and the disc-drive version $799.99. UK prices have not yet been confirmed, but Microsoft stated the increases will be global.
Current UK Pricing and Projected Hikes
Currently in the UK, the digital Xbox Series X sells for £449.99, the disc-based model for £499.99, the 512GB Series S for £299.99, and the 1TB Series S for £349.99. Based on the US rises, both Xbox Series X models could increase by roughly £100, pushing the Series S above £400.
2TB Model Discontinued
As part of the announcement, Microsoft confirmed it is discontinuing the 2TB Xbox Series X model, citing high production costs. The company also introduced a ‘buy now, pay later’ scheme for Xbox hardware through Microsoft stores to mitigate the price hikes.
Component Crisis and Future Increases
Microsoft blamed the ‘current component costs crisis’ for the price rise. According to a blog post, ‘console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.’ The company warned that further price increases are likely next year. This follows a worldwide increase in May 2025 and a US-only hike in October 2025.
Impact on Console Sales and Competition
The price hike comes ahead of the highly anticipated launch of GTA 6 on November 19, which was expected to boost Xbox Series X/S sales. However, the higher prices may push consumers toward the PlayStation 5 instead. Microsoft is also facing challenges with its next console, Project Helix, expected to launch in 2027, as high memory costs could lead to an unappealing price point.
Earlier this year, Microsoft cut the price of Xbox Game Pass after a 50% increase in 2025 led to a loss of millions of subscribers. The component crisis is predicted to last at least five more years, potentially affecting hardware availability around GTA 6’s launch.
