Xbox buyers will also get new financing, trade-in, and refurbished console options.
Anyone planning to pick up a new Xbox console may want to do so sooner rather than later. Xbox has announced a worldwide console price increase that will take effect on 1 August 2026, while also confirming that its 2TB Xbox console will be discontinued. The announcement was made via Xbox Wire on Thursday (25 June).
What’s the Xbox price increase in August?
According to the announcement, The 512GB models will increase by US$100, while 1TB models will see a US$150 price increase. The latest announcement marks Xbox's second console price increase since October 2025, when the company raised console prices in the United States by between US$20 and US$70.
When do the new Xbox prices take effect?
The updated Xbox console prices will take effect worldwide on 1 August, 2026.
Why are Xbox console prices increasing again?
The Xbox team said they had hoped to avoid another price increase and had spent the past several months working with suppliers to explore alternative options. “Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” they explained in the announcement.
The company added that the wider consumer electronics industry continues to struggle with the ongoing components crisis, but said consoles have been particularly affected, because they are generally sold below the cost of manufacturing.
“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.” With the new pricing taking effect in August, buyers have just over a month before the updated prices come into force.
What new Xbox affordability programmes are available?
Alongside the higher console prices, Xbox also announced several programmes intended to make Xbox hardware more accessible. The first is Buy Now, Pay Later, allowing eligible Xbox hardware purchases through Xbox Stores to be split into predictable, short-term, interest-free instalments.
Xbox is also working with financing partners to offer 0% APR financing for up to 12 months on eligible Xbox hardware purchases, giving buyers more flexibility with monthly payments. The company also revealed a Previously Played Consoles programme with participating retail partners. Players who trade in Xbox consoles they no longer use will be able to receive cash or store credit, with those consoles then made available to other buyers at lower prices.
In addition, Xbox Certified Refurbished Consoles will continue to be sold through Xbox Stores for up to US$100 off MSRP.
Is the Xbox 2TB console being discontinued?
Xbox confirmed that it is sunsetting the 2TB Xbox console as part of the latest hardware changes. The announcement did not provide further details behind the decision, only confirming that the highest-capacity model will no longer be part of the Xbox console lineup. Once existing inventory has been sold, the 2TB model will leave the lineup, leaving the 512GB and 1TB versions as the remaining console storage options.
This marks Xbox's second console price increase since October 2025, and it is far from the only gaming hardware affected by rising component costs. PlayStation 5 prices increased in April, Valve's Steam Deck followed with its own price increase last month, while Nintendo is set to raise Nintendo Switch 2 prices in September.
With RAM and storage costs continuing to climb across the industry, console manufacturers continue to grapple with the wider components crisis.
