Xbox Console Prices Rise by Up to $150 as Microsoft Ends 2TB Model
Xbox console prices increased worldwide on August 1, 2026, following a pricing update announced by Microsoft in June. The changes add $100 to 512GB models and $150 to 1TB models, while the company is also discontinuing its 2TB console model.
Xbox attributes the increase to rising storage and memory costs, which it says have grown by more than 2.5 times. The company expects those costs to double again by fall 2027.
At the same time, Microsoft has outlined several purchasing options intended to make Xbox hardware more accessible, including Buy Now, Pay Later, interest-free financing, trade-in programs and certified refurbished consoles.
Xbox Console Prices Increase From August 1
The new Xbox pricing took effect worldwide on August 1. Microsoft announced different increases depending on storage capacity:
| Xbox console storage | Price increase |
| 512GB models | $100 |
| 1TB models | $150 |
| 2TB model | Being discontinued |
The adjustment follows an earlier price increase in the United States. According to Xbox, US console prices rose by between $20 and $70 in October 2025.
Microsoft says it spent the following months working with suppliers on alternatives, but continued increases in component costs ultimately led to another pricing adjustment.
Why Microsoft Is Raising Xbox Prices
Storage and memory costs are the main reason Microsoft gives for the latest increase.
According to Xbox, prices for these components have risen by more than 2.5 times. The company also expects another doubling by fall 2027, suggesting that pressure on console manufacturing costs could continue.
Microsoft says the problem extends across the consumer electronics industry but has a particularly strong impact on gaming consoles. Unlike many other consumer devices, consoles are typically sold for less than their manufacturing cost rather than generating a profit directly from the hardware.
Microsoft Is Discontinuing the 2TB Xbox Model
The pricing update also includes the end of Microsoft’s 2TB Xbox console model.
Xbox says the 2TB configuration is being sunset. The announcement does not identify a replacement model or specify how long remaining stock may continue to be available.
The 512GB and 1TB configurations are the two storage capacities specifically covered by Microsoft’s announced price increases.
Buy Now, Pay Later Expands for Xbox Hardware
Alongside the higher prices, Microsoft is making Buy Now, Pay Later options easier to use for eligible Xbox hardware purchases through Microsoft Stores.
Eligible customers can divide the purchase price into predictable short-term installments without interest rather than paying the entire amount upfront.
Payment options vary by region. Credit is provided by third parties and remains subject to status, eligibility and applicable terms.
Microsoft Plans 0% APR Financing for Xbox Hardware
Microsoft is also working with financing partners to offer 0% APR financing for eligible Xbox hardware purchases for up to 12 months.
The program gives qualifying customers another way to distribute the cost of a console across multiple monthly payments.
Availability depends on the market and individual eligibility. The specific terms are determined by the third-party credit providers involved in the program.
Previously Played Xbox Consoles Are Also Planned
Microsoft is working with retail partners on programs designed to make previously played Xbox consoles available at lower prices.
Under the planned system, players who are upgrading or no longer use their consoles will be able to trade them in through participating retailers for cash or store credit. Those consoles can then be offered to other customers at reduced prices.
Microsoft has not provided specific launch dates, participating retailer lists or discount amounts for these programs.
Certified Refurbished Xbox Consoles Offer Another Option
Xbox Certified Refurbished consoles are already available through Microsoft Stores.
Microsoft says these systems can be offered for up to $100 below the manufacturer’s suggested retail price.
Xbox lists Certified Refurbished Consoles separately from its planned previously played console programs. The latter is being developed with retail partners around trade-ins, while Certified Refurbished consoles are an existing Microsoft offering.
Together, the two programs provide alternatives for buyers who do not want to purchase a new Xbox console at the updated retail price.
Xbox Series S Remains Microsoft’s Lowest-Cost Console Option
Microsoft continues to position Xbox Series S as the lowest-cost way for console players to access its current gaming lineup.
In its announcement, the company highlighted several games associated with its current console offering, including Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved and Madden NFL 27.
Xbox Series S therefore remains Microsoft’s lowest-cost option for console players despite the August price adjustment.
What the Xbox Price Changes Mean for Buyers
The August 2026 update raises the upfront cost of new Xbox hardware while also changing the range of available configurations.
Microsoft is pairing the higher prices with additional purchasing options, including installment payments, 0% APR financing, previously played consoles and Certified Refurbished hardware. These alternatives give buyers several ways to approach a console purchase without relying exclusively on a new system at full retail price.
For players who already own an Xbox, hardware prices are only one part of gaming spending. Games, downloadable content and subscriptions can represent ongoing costs after the console purchase.
Baxity Store offers Xbox Gift Cards and selected Game Pass products across multiple denominations, currencies and regions, providing existing Xbox users with another way to purchase digital credit or selected subscriptions.
Before purchasing a digital code, buyers should check its currency, region and product requirements to ensure compatibility with the intended Microsoft account.
