Xbox Series X to Cost $799 as Microsoft Confirms August Price Hike

Microsoft has confirmed that Xbox console prices will rise significantly from 1 August 2026, with the flagship Xbox Series X disc-drive model climbing to $799.99 — a $150 increase on its current price and a full 60% above the $499.99 it launched at in November 2020. The announcement, made via the official Xbox Wire blog on 25 June 2026, marks the third round of Xbox price increases in just 15 months and, by some distance, the steepest.

UK prices have not yet been officially confirmed by Microsoft. Analysts estimate British consumers could face increases of approximately £80–£120 depending on the model, though buyers should treat those figures as indicative rather than firm. What is clear is that anyone thinking of buying should seriously consider doing so before the end of July.

What the new prices look like

The full picture in US dollars, confirmed by Microsoft, is as follows:

• Xbox Series X 1TB (disc): $799.99 — up $150
• Xbox Series X 1TB (digital): $749.99 — up $150
• Xbox Series S 1TB: $599.99 — up $150
• Xbox Series S 512GB: $499.99 — up $100
• Xbox Series X 2TB Galaxy Black Special Edition: discontinued

That last point deserves particular attention. The 2TB Galaxy Black Special Edition was previously priced at $799.99. A $150 increase would have pushed it past the $1,000 mark — a psychological threshold Microsoft was apparently unwilling to cross. Rather than sell a four-figure console, the company has chosen to kill the model entirely. Existing stock will continue to sell through, but no new units will be produced.

The disc-equipped Series X at $799.99 now sits at exactly the price the discontinued 2TB model held before this announcement — meaning buyers today pay the same for half the storage.

Microsoft's explanation

Microsoft pointed squarely at the cost of console storage and memory, which it says have been devastated by surging demand from AI data centres. In the Xbox Wire post, the company said:

"Last October, we increased Xbox console price by $20–$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."

Market data from Counterpoint Research supports the severity of the problem. Prices for 32GB DDR5 memory modules rose from around $94 in late 2025 to $127 within three months, before surging to $282 in the first quarter of 2026. Major memory manufacturers including Micron and SK Hynix have been prioritising high-bandwidth memory products for artificial intelligence applications, tightening supplies for consumer electronics across the board.

A brutal moment to be an Xbox fan

The timing is difficult for Microsoft in several respects. The price hike comes just hours after Apple announced increases on MacBook and iPad models, and follows Sony raising PlayStation 5 prices earlier this year. Nintendo has also confirmed plans to increase Switch 2 prices globally from September. The component crisis is industry-wide — but the pain is landing unevenly.

For Xbox specifically, the competitive picture is uncomfortable. A shopper comparing disc-based consoles now faces a $150 gap in Sony's favour — $649.99 for a PS5 versus $799.99 for a Series X — for machines with broadly comparable performance. Meanwhile the Xbox Series S, long marketed as the affordable entry point into the Xbox ecosystem, will in August carry the exact same US price as the original Xbox Series X did at launch in 2020. The "budget" console of 2026 costs what the flagship did five and a half years ago.

The announcement also arrives during a turbulent period for Microsoft Gaming more broadly. The division — rebranded simply as Xbox in April 2026 — is led by new CEO Asha Sharma, who took over from the retiring Phil Spencer in February. Sharma has overseen a significant restructuring, with layoffs affecting around 3,200 staff, representing roughly 20% of the gaming workforce. Microsoft's latest financial results showed a 7% drop in gaming revenue, including a 33% fall in Xbox hardware sales.

What Microsoft is doing to soften the blow

For US customers, Microsoft has announced a package of mitigation measures, including Buy Now, Pay Later options on eligible hardware, interest-free financing at 0% APR for up to 12 months, trade-in programmes for cash or store credit, and Xbox Certified Refurbished Consoles at up to $100 off the recommended retail price. Whether equivalent schemes will be available in the UK has not been confirmed.

One piece of relative good news: Microsoft has not announced any increase to Game Pass subscription pricing alongside this hardware hike.

What UK buyers should do now

With no confirmed UK pricing yet, British shoppers are in an uncomfortable position. What can be said with confidence is that the increases take effect worldwide on 1 August 2026 — and that buying before that date locks in the lower price. The exact saving in pounds remains unconfirmed, but given the scale of the US increases, it is likely to be meaningful. If an Xbox was already on your shopping list, waiting is the one thing that is certain to cost you more.