Story perspectives

Xbox Series S/X prices rise $100-$150 amid AI cost surge

6/28/2026

Summary

Microsoft Raises Prices

Microsoft will raise MSRP for Xbox Series S and Series X consoles on August 1 2026.
The 512 GB models add $100 and the 1 TB models $150, raising U.S. MSRP to $499.99, $599.99, $749.99 and $799.99.
Microsoft says memory and storage costs have risen >2.5× due to AI demand and will likely double by fall 2027.
Microsoft will discontinue the 2-TB “Galaxy Black” edition and will offer financing, trade-in and up to $100 off refurbished units.

Summary

Retailers Slash Prices

Walmart and Target sell Xbox Series X for $573.99, below the $649.99 MSRP and upcoming $799.99 price.
Best Buy offers a $50 reward certificate for console bundled with a Grand Theft Auto 6 preorder, including Xbox and PlayStation models, and provides 12-month no-interest financing that spreads a PlayStation 5 purchase into $41.67 payments.
Industry sources warn component shortages will outstrip demand through the holiday season, threatening console availability for the GTA 6 launch.

Summary

Microsoft hikes prices

Microsoft will raise Xbox prices on 1 August 2026 because AI-driven demand for memory and storage has raised costs.
Asha Sharma, Xbox chief executive, said the next-generation Xbox may be less premium to keep it affordable.
The same letter warned Microsoft could shut down some internal game-development studios as part of a broader cost-cutting reset.
Microsoft will expand its refurbishment program for used Xbox consoles to improve quality and availability.

History

Historical Context

In November 2005 Microsoft unveiled the Xbox 360 at the Games Convention in Leipzig, pricing the Premium model at US $399. Subsequent price adjustments, such as the 2007 cuts, demonstrated Microsoft’s willingness to adjust pricing, a dynamic that reappears in the 2026 Series X/S price hikes reported by retailers among global retailers throughout North America.

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Microsoft Raises Prices

Microsoft will raise MSRP for Xbox Series S and Series X consoles on August 1 2026.
The 512 GB models add $100 and the 1 TB models $150, raising U.S. MSRP to $499.99, $599.99, $749.99 and $799.99.
Microsoft says memory and storage costs have risen >2.5× due to AI demand and will likely double by fall 2027.
Microsoft will discontinue the 2-TB “Galaxy Black” edition and will offer financing, trade-in and up to $100 off refurbished units.

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