Microsoft's previously announced Xbox price increase has officially taken effect worldwide as of August 1, 2026. This marks the third Xbox price hike since May 2025 and is the largest one yet.

New Prices in the US

New Prices in Europe

Why the Price Increase

According to Microsoft's official statement on Xbox Wire, the main reason behind the increase is the rising cost of memory and storage components. The company noted that console storage and memory prices have risen by more than 2.5 times and are expected to double again by fall 2027. There was also a $20 to $70 increase back in October 2025. Microsoft stated that while they hoped a second hike wouldn't be necessary, ongoing negotiations with suppliers couldn't prevent it.

How Much Have Prices Gone Up

Overall, the Xbox Series X has become 60 percent more expensive compared to its $499 launch price in 2020. The Xbox Series S has seen a 67 percent increase from its original $299.99 price. With this hike, Xbox is now the most expensive flagship console compared to PS5 and Switch 2, a rare occurrence since the Xbox One launched pricier than the PS4 in 2013. Both Sony and Nintendo have also raised prices in 2026 due to the same global memory shortage.

Are Game Prices Going Up Too

Microsoft did not announce a Game Pass price increase with this news; Game Pass Ultimate remains at $19.99 per month in the US for now. However, the company confirmed that new first-party titles launching during the 2026 holiday season will be priced at $79.99 instead of $69.99. This affects major franchises like Halo, Gears of War, and Forza. These games will still be available on Game Pass on launch day.

Alternative Options

To ease the impact, Microsoft is offering "buy now, pay later" plans, zero-interest financing, and expanded trade-in and refurbished product programs. Some retailers are still selling at discounted prices to clear out inventory before the hike. Since the 2TB model is discontinued, gamers who want extra storage should act before stocks run out.

Frequently Asked Questions

Has the price of my current Xbox increased?

No, this price hike only applies to newly sold consoles and does not affect devices you already own.

Did Game Pass prices go up?

No, there is no Game Pass price increase with this announcement. However, since there have been adjustments in the past, future increases can't be ruled out.

Can I still find the 2TB model?

Only while existing retail stocks last. Microsoft has officially discontinued this model.