Xbox Series X Price Soars Again in Major 2026 Hike

Microsoft confirms another worldwide Xbox price increase, pushing the 1TB Series X to $799 while introducing financing and refurbished console options.

Microsoft has revealed that Xbox console pricing will increase by a substantial amount once again. It is the third major price change for the platform in the last couple of years. The latest modifications will take effect on August 1, 2026, and will affect customers worldwide, according to an official Xbox blog post.

Under the new pricing arrangement, Xbox devices with 512GB of storage will be $100 more, and Xbox models with 1TB of storage will be $150 more. Microsoft has announced it will not produce the 2TB Xbox as part of the new price shift.

Microsoft said it was another painful decision, following a $20-$70 increase in U.S. pricing in October 2025.

Microsoft said it had hoped there would be no further price increases and had worked with suppliers for many months to identify alternative options before deciding to do so. The main cause of the latest price hike, the company argues, is the ongoing rise in parts prices. Prices for storage and memory have more than doubled since the start of the year, Microsoft claimed.

They also stated the prices are expected to triple again by fall 2027, which will put even more pressure on the gaming hardware market. Microsoft stated that the consumer products market as a whole still faces challenges due to supply chain constraints and rising component costs. But the business added that gaming consoles are especially vulnerable, since they tend to be sold at extremely low or no profit margins.

At the same time, smartphones, laptops, speakers, and many other consumer devices have superior hardware margins. But Microsoft also said it had a variety of ideas to make Xbox hardware more affordable, despite the price hikes. Microsoft Stores will offer more Buy Now, Pay Later financing options, which is one of the largest changes. Qualifying consumers can use them to pay in predictable short-term installments and don’t have to pay interest.

Microsoft will also offer 12-month loans at 0% APR on select Xbox device purchases through partnerships with lenders.

Microsoft: “The program is meant to help people who still want to buy a new machine but cannot afford to do so because of the higher prices that are in the stores. Microsoft is placing greater emphasis on its certified refurbished Xbox systems and offering payment options. Today, purchasers can get up to $100 off the manufacturer's suggested retail price.

That implies some consumers will be able to get hardware closer to what it cost before the price hike, while supplies last. Microsoft also discussed its support for refurbished and resale outlets, which makes it more likely that users will acquire older hardware. What’s interesting about this statement is that it acknowledges there are options for players who don’t want to pay full retail for new consoles, such as shops and secondhand sellers.

This next upgrade is another big leap for Xbox hardware. The brand-new Xbox Series X 1TB console, which launched at $499, will now cost roughly $799 – a substantial price increase. For many gamers, the announcement is just another sign of the rising trend of escalating hardware costs transforming the gaming sector in 2026.