Here's how bad Microsoft's latest XBOX price hike is going to hurt

Although there were plenty of rumors suggesting the Steam Machine would be quite expensive, that didn’t stop the sticker shock that followed when Valve finally announced the official price. Of course, the current component crisis played a big role in deciding the price point Valve landed on. That same crisis is also being felt on the console side, as Nintendo, Sony, and Microsoft have all been incrementally raising the prices of their hardware. The latest development in this ongoing situation will see yet another price hike for the XBOX.

Microsoft has announced that it plans to update the prices of the XBOX Series X and Series S worldwide on August 1, 2026. The 512GB models will see an increase of $100, while the 1TB models will go up by $150. In addition to the price hikes, Microsoft says that it will also start sunsetting its 2TB model.

Here will be the new prices in the US starting at the beginning of August:

Similar to Valve, Microsoft attributes the need to jack up prices to the memory and storage shortages. According to the console maker, “console storage and memory prices have increased by more than 2.5x.” The company adds that it expects to see another doubling by the fall of 2027. If that’s how it plays out, it wouldn’t be a surprise to see another price increase next year.

This marks the third time Microsoft has raised the price of the XBOX since 2025. The first price hike came in May of 2025, and was followed by a second price hike in October.