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Microsoft to Raise Xbox Prices Globally and Drop 2TB Series X

The company said an AI-driven memory shortage has sharply lifted DRAM and NAND costs, forcing a change to pricing and product lineup.

Overview

  • Microsoft announced that new Xbox list prices take effect August 1, 2026, raising 512 GB models by $100 and 1 TB models by $150 with US examples including the Series S 512 GB at $500 and the Series X starting at $750.
  • The company will stop producing the 2 TB Xbox Series X as part of the portfolio change, saying the extra-capacity model is no longer viable under current component costs.
  • Microsoft said consoles are often sold at or below manufacturing cost and that memory prices have climbed more than 2.5 times, with the firm warning those prices could double again by autumn 2027.
  • The price move follows similar steps by Sony and signals a wider industry shift that has already pushed PlayStation and Nintendo pricing higher and raised hardware launch prices across gaming.
  • European retail prices have not yet been set so consumers face short-term uncertainty, higher out‑of‑pocket costs for new consoles, and a risk of further price or lineup changes if chip prices keep rising.