Xbox prices are rising for the third time in just 15 months , with Microsoft announcing new increases of up to €200 in Europe and £170 in the UK. The move, which takes effect from August 1, 2026 , reflects a deeper crisis in the components market, with memory and storage costs soaring due to demand from the artificial intelligence industry. Microsoft is also withdrawing the Xbox Series X 2TB Galaxy Black Special Edition model , marking a major restructuring of its lineup.
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The announcement was made on June 25, 2026 , and applies to the entire Xbox Series X|S console line . In the US, the new prices are as follows: the Xbox Series S 512GB now sells for $499.99 (up $100 ), the Xbox Series S 1TB for $599.99 , the Xbox Series X Digital 1TB for $749.99 (up $150 ), and the flagship Xbox Series X Disc 1TB for $799.99 (up $150 ). Based on the 2020 launch price , the top model now costs about 60% more than the original $499.99 .
In Europe, the situation is even more dramatic. The Xbox Series X Disc 1TB has gone up from €599.99 to €799.99, an increase of €200. In the UK, the same model has gone from £499.99 to £669.99, an increase of £170. This is one of the biggest price increases the console market has ever seen in such a short period of time, according to The Verge.
Why Xbox Prices Are Rising — The Component Crisis
Microsoft attributes the Xbox price hikes to soaring component costs, specifically the crisis in the DRAM and NAND flash storage markets. Demand from data centers powering AI applications has created severe memory shortages, driving up production costs for all consumer electronics devices. This isn't unique to Microsoft — other console companies have raised prices, too — but the Xbox price hikes stand out for their size and frequency.
The withdrawal of the 2TB is particularly revealing: Microsoft is choosing to abandon the premium SKUs with large storage capacities, precisely because they are the most exposed to the cost crisis. Rather than absorb the losses or pass on some of the costs to the consumer, the company prefers to simplify its range. This strategic choice testifies that Microsoft is no longer willing to subsidize its hardware as it did in previous generations of consoles. The case of Xbox prices
It's worth noting that this is the third Xbox price hike since May 2025.The recurring nature of the increases suggests that this is not a one-off adjustment, but an ongoing cost pressure that doesn't appear to be abating anytime soon. Analysts and industry commentators have called the increases unusually steep and a sign of an Xbox hardware business under pressure.
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Xbox prices and the impact on the console market
The console market is dominated by Sony's PlayStation 5 and Xbox Series X|S, with Nintendo operating in a different segment with its portable consoles. Xbox has already been the weakest hardware seller among the major home console platforms in recent years, and the new Xbox price hikes risk further exacerbating that situation. Industry reports are calling for "historically low" hardware sales in May 2025, the very period when the price hikes began.
For consumers in Greece and the rest of Europe, the €200 in the top model is particularly painful. The Xbox Series X Disc 1TB at €799.99 now approaches the price levels of an entry-level gaming PC, which radically changes the cost-value ratio that traditionally favored consoles over PCs. Families and young gamers who were thinking of buying an Xbox instead of a PlayStation or gaming PC will now have to reconsider their options.
This trend isn't just Microsoft. Sony has also raised prices for the PlayStation 5 in some markets, but the increases haven't been as frequent or as large. The broader trend suggests that the era of cheap, subsidized consoles — where companies sold hardware at or below production costs to gain market share — appears to be coming to an end. Manufacturers are moving toward a strategy that prioritizes profit margins over market share.
Future of Xbox: Pricing, Game Pass and cloud gaming
If memory and storage prices remain high — which seems likely given the ongoing demand from the AI industry — console price volatility will continue. Microsoft may continue to simplify its Xbox, focusing on digital models and limiting premium versions with high capacities. The withdrawal of the 2TB model is a first step in this direction.
At the same time, Microsoft has every reason to invest even more in Game Pass, cloud gaming , and PC distribution. If Xbox remain weak, the company can maintain its user base through subscription and streaming services, without relying on physical console sales. This strategic shift is already visible in Microsoft in Xbox Cloud Gaming and the expansion of Game Pass to multiple platforms.
See also: Three Xbox studios try to split off from Microsoft's restructuring
For Greek consumers considering buying an Xbox, the advice is not to expect a price drop in the near future. If buying a console is in your plans, it’s worth carefully comparing the options — Xbox Series X, PlayStation 5 or even an entry-level gaming PC — considering not only the purchase price but also the cost of games, subscription services and title availability. The console market is at a critical juncture, and the choices consumers make today will shape companies’ strategy for years to come.
