Microsoft is raising Xbox prices once again as the ongoing memory shortage continues to drive up hardware costs.
The company announced that Xbox console prices will increase by $100 to $150 worldwide starting August 1. The 512GB models will cost $100 more, while 1TB versions will rise by $150. Microsoft also confirmed it will discontinue the 2TB Xbox model.
In a blog post, Microsoft said memory and storage costs have climbed by "more than 2.5x" over the past year and warned they could double again by the fall of 2027.
The announcement came just hours after Apple increased prices on several products, including MacBooks, iPads, Apple TV, HomePod, and Vision Pro, with some devices rising by as much as $300. Both companies cited soaring memory and storage costs as the main reason for the increases.
This marks the third price hike for Microsoft's current Xbox generation after increases in May and October 2025. Since its 2020 launch, the Xbox Series X has become $250 to $300 more expensive.
The memory shortage has affected the wider consumer electronics industry, with companies including Sony and Nintendo also raising prices on gaming hardware. Microsoft noted that consoles are particularly vulnerable because they are often sold at little or no profit, unlike many other consumer electronics.
Alongside the price increases, Microsoft highlighted financing options, buy-now-pay-later programs, and refurbished consoles as ways to help make Xbox systems more affordable.