Xbox Series X moves to $799.99 as Microsoft cites memory costs

On 25 June 2026 Microsoft announced a worldwide price increase for the Xbox Series X and Series S, effective 1 August. In the United States the 512GB Series S moved from $399.99 to $499.99, the 1TB Series S from $449.99 to $599.99, the all-digital Series X from $599.99 to $749.99 and the Series X with disc drive from $649.99 to $799.99. The 2TB Series X, the Galaxy Black edition, is discontinued.

Microsoft’s statement was unusually specific about the cause: “console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.” It added that consoles are commonly sold at or below manufacturing cost, with platform holders earning on games, subscriptions, accessories and services over the life of the hardware, which leaves the box itself exposed when component costs jump.

Third increase in about fifteen months

This is the third increase since launch. Prices rose globally in May 2025 and again in the United States in October 2025, by $20 to $70 depending on the model. Microsoft did not publish a full list of new prices outside the US and said local prices would vary with currency, tax and regional pricing. Reports from Europe put most models around €200 higher, though those figures came from secondary outlets rather than from Microsoft.

To soften the change Microsoft pointed to buy-now-pay-later instalments through the Microsoft Store, 0% APR financing for up to 12 months on eligible Amazon purchases, trade-in programmes in development with retail partners, and certified refurbished consoles at up to $100 off. None of these apply uniformly outside the US.

The hardware strategy beyond the current generation is becoming clearer. Microsoft and AMD have a multi-year partnership, announced in 2025, covering silicon for next-generation consoles and portable devices. On AMD’s fourth-quarter 2025 earnings call Lisa Su said the Xbox chip programme is on track to support a 2027 launch; Microsoft has not confirmed a date. Sarah Bond has said the next generation will make greater use of AI and machine learning.

What it means for buyers

At $799.99 the disc Series X now lists above the $649.99 PS5 in the US, so the price advantage Xbox hardware carried has gone. Buyers should treat the 2TB Series X as end-of-life stock: it may be available at distributors for a while, but there will be no replenishment. The 1TB Series S at $599.99 now sits uncomfortably close to a disc PS5, so retail buyers should check sell-through before committing to the smaller console in volume. Confirm regional pricing with the distributor rather than converting the US list, order before 1 August where stock is still on the old price, and keep MOQs modest until local demand at the new level is visible. A 2027 next-generation launch, if it holds, also argues against building deep inventory of the current generation in 2026.