Microsoft Raises Xbox Console Prices for Third Time in Two Years
Microsoft announced price increases of $100-$150 on Xbox Series S and X consoles, effective August 1, 2026, citing a 2.5x surge in memory and storage costs driven by AI chipmaker demand. The 2TB Xbox Series X is discontinued. To offset higher prices, Microsoft introduced Buy Now Pay Later via Klarna, interest-free Amazon financing, and expanded trade-in programs. The move follows similar Apple price hikes and caused Microsoft and Apple shares to drop nearly 4% and 5% respectively.
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Microsoft (MSFT): One of the Best AI and Technology Stocks to Buy Now
This article from Yahoo Finance, published on July 4, 2026, reports that Microsoft Corporation (NASDAQ:MSFT) is increasing the price of its Xbox game consoles starting August 1, 2026. The Xbox Series S with 512GB storage will rise by $100 to about $500, while the 1TB model will increase by $150. The price hike is attributed to a surge in memory and storage component costs, which have risen over 2.5 times due to strong demand from AI chipmakers. Memory manufacturers like Micron and SK Hynix have limited capacity and are prioritizing high-bandwidth memory for AI infrastructure, such as Nvidia's GPUs. Microsoft expects memory prices to double again by fall 2027. The article positions Microsoft as a strong AI and technology stock investment, while also promoting a separate report on an undervalued AI stock benefiting from Trump-era tariffs and onshoring trends.
Yahoo FinanceMicrosoft (MSFT): One of the Best AI and Technology Stocks to Buy Now
Microsoft Corporation (NASDAQ:MSFT) is highlighted as a top AI and technology stock. On June 25, CNBC reported that Microsoft will increase Xbox console prices starting August 1, following Apple's price hikes on MacBooks and iPads. The Xbox Series S with 512GB storage will rise by $100 to about $500, while 1TB models will increase by $150. The price increase is attributed to surging memory costs, which have more than doubled due to strong demand from AI chipmakers. Memory manufacturers like Micron and SK Hynix have limited capacity and prioritize high-bandwidth memory for AI infrastructure such as Nvidia's GPUs. Microsoft expects memory prices to double again by fall 2027. The article also promotes other AI stock investment opportunities.
Yahoo FinanceMicrosoft Raises Xbox Series Console Prices for Third Time in Two Years, Discontinues 2TB Model
Microsoft has announced its third price increase for Xbox Series consoles in two years, with $100-$150 hikes across all models except the now-discontinued 2TB Xbox Series X. The new prices, effective August 1, include the Xbox Series S 512GB at $499.99, the 1TB Series S at $599.99, the 1TB Series X Digital Edition at $749.99, and the standard 1TB Series X at $799.99. To ease the financial burden, Microsoft is introducing Buy Now Pay Later options via Klarna and interest-free 12-month financing at Amazon. The company is also expanding its trade-in program with retail partners, allowing players to sell their consoles for cash or store credit. The article notes that the price increases make the now-discontinued 2TB model's previous $799.99 price seem more attractive, and compares the situation to Apple's recent product changes.
Latest from Tom's HardwareMicrosoft Raises Xbox Series Prices for Third Time in Two Years, Discontinues 2TB Model
Microsoft is increasing prices on all Xbox Series consoles by $100 to $150, marking the third price hike in two years. The new pricing takes effect August 1. The 512GB Xbox Series S will cost $499.99, the 1TB Xbox Series S $599.99, the 1TB Xbox Series X Digital Edition $749.99, and the standard 1TB Xbox Series X $799.99. Microsoft is also discontinuing the 2TB Xbox Series X model, with remaining stock priced at $799.99. To soften the impact, Microsoft is introducing Buy Now Pay Later options through a partnership with Klarna, offering 12-month interest-free financing at Amazon, and expanding trade-in programs with retail partners. Certified refurbished consoles remain available. The article frames these moves against similar price increases by Apple and high costs of competing hardware like Valve's Steam Machine.
Latest from Tom's HardwareMicrosoft Raises Xbox Series Prices Third Time in Two Years, Discontinues 2TB Model
Microsoft is increasing the price of its Xbox Series S and X consoles for the third time in two years, with hikes of $100-$150 across models, effective August 1. The 2TB Xbox Series X variant is being discontinued. New pricing places the 512GB Xbox Series S at $499.99, the 1TB Series S at $599.99, the Digital Edition Xbox Series X at $749.99, and the standard Xbox Series X at $799.99. To offset the price increases, Microsoft is expanding payment options including 'Buy Now, Pay Later' via Klarna and interest-free 12-month financing on Amazon. The company is also broadening its trade-in program to allow customers to sell existing consoles to retail partners for store credit or cash. The article also contrasts the new pricing with Valve's Steam Machine, noting that Microsoft's trajectory makes the high-end Steam Machine's price seem less extreme.
Latest from Tom's HardwareMicrosoft Raises Xbox Console Prices Citing Soaring Component Costs
Microsoft announced price increases for Xbox game consoles, effective August 1, 2026, citing soaring component costs, particularly memory and storage. The Xbox Series S with 512 GB will rise by $100 to about $500, and the 1 TB model by $150. The entry-level Xbox Series X will start at approximately $750. The move follows Apple's similar price hikes for MacBooks and iPads on the same day. Microsoft attributed the increases to a 2.5x surge in memory prices driven by historic demand from AI chipmakers like Nvidia, which has led memory manufacturers such as Micron and SK Hynix to prioritize high-bandwidth memory for AI infrastructure. Microsoft noted consoles are typically sold at a loss, unlike other consumer electronics. The 2 TB Xbox Series X, introduced in 2024, will be discontinued. Both Microsoft and Apple shares fell following the announcements, dropping nearly 4% and 5% respectively.
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