Just when you though Microsoft’s last round of price hikes for the Xbox Series S and Xbox Series X was the last one, here’s yet another one.
Starting August 1, 512GB and 1TB models of the Xbox will be $100 and $150 more expensive, respectively. That means the Series S will start at $499.99, while the disc-less Series X will sell for $749.99. Finally, the disc version of the Series X will sell for $799.99. The 2TB Series X will be no more.
In a blog post announcing the price hikes, Microsoft blamed rising component costs as the culprit.
“Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” reads the post.
“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
To help with the rising costs, Microsoft offers a buy now, pay later that breaks up the payment over weeks or months. The company is also working with retailers to offer interest-free financing for up to 12 months.
Still, it’s clear that gaming is no longer nearly as affordable as it used to be. The Xbox Series S and Series X launched at $299 and $499, respectively, in November 2020. Since then, Microsoft has announced several price hikes for both consoles.
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