Xbox's third price hike in two years: Series X hits $800 in August, 2TB SKU killed
TL;DR
Xbox prices rise globally August 1: +$100 on 512GB SKUs, +$150 on 1TB, and the 2TB model is discontinued. Series X has risen 60% from its launch price.
Microsoft announced via Xbox Wire on June 25 that Xbox console prices rise globally from August 1: 512GB models +$100, 1TB models +$150, the 2TB model discontinued. The third Xbox Series price hike since 2020 launch. Series X has now risen from $499 to $799 — +60% in six years.
New prices: Series S 512GB $400→$500; Series S 1TB $450→$600; Series X 1TB Digital $600→$750; Series X 1TB Disc $650→$800.
The contrarian move is killing the 2TB SKU. Console makers historically extend a generation with capacity bumps. Microsoft is doing the opposite — raising prices and trimming SKUs — which says 2TB NAND can't be sold at positive margin at current memory prices. Sony PS5 raised prices June 17, Apple raised Mac/iPad prices June 25, Samsung is committing $648B to memory expansion — the chain is consistent: consumer memory has been drained by AI server demand.
Microsoft's wording is blunt: «Console storage and memory costs have risen more than 2.5× and are expected to double again by autumn 2027.» First-tier hardware vendor to write the next price hike into the current announcement — pre-emptive cover for 2027.
Mitigations are financial: 0% APR financing up to 12 months, Previously Played trade-ins, refurbished units at $100 off. The console moves out of mass-market consumer territory and gets sold like an appliance — installments, secondhand cycle, refurb.
Game Pass benefits. With a console at $600–800, more users will be pushed toward streaming. Microsoft's hardware pain is feeding the Xbox Cloud Gaming story.
via Xbox Wire / Thurrott
New prices: Series S 512GB $400→$500; Series S 1TB $450→$600; Series X 1TB Digital $600→$750; Series X 1TB Disc $650→$800.
The contrarian move is killing the 2TB SKU. Console makers historically extend a generation with capacity bumps. Microsoft is doing the opposite — raising prices and trimming SKUs — which says 2TB NAND can't be sold at positive margin at current memory prices. Sony PS5 raised prices June 17, Apple raised Mac/iPad prices June 25, Samsung is committing $648B to memory expansion — the chain is consistent: consumer memory has been drained by AI server demand.
Microsoft's wording is blunt: «Console storage and memory costs have risen more than 2.5× and are expected to double again by autumn 2027.» First-tier hardware vendor to write the next price hike into the current announcement — pre-emptive cover for 2027.
Mitigations are financial: 0% APR financing up to 12 months, Previously Played trade-ins, refurbished units at $100 off. The console moves out of mass-market consumer territory and gets sold like an appliance — installments, secondhand cycle, refurb.
Game Pass benefits. With a console at $600–800, more users will be pushed toward streaming. Microsoft's hardware pain is feeding the Xbox Cloud Gaming story.
via Xbox Wire / Thurrott
