Xbox Prices Jump by Up to USD 150: The New Reality
The Xbox price increase is a worldwide jump in retail costs for Microsoft’s current consoles, with 512GB models rising by USD 100 (approx. RM460) and 1TB systems by USD 150 (approx. RM690), alongside the withdrawal of the 2TB version from sale, all driven by sharply higher storage and memory component prices and taking effect at the start of August. Microsoft is not nudging prices; it is resetting the baseline for console ownership. The Xbox Series S 512GB moves from USD 399.99 (approx. RM1,840) to USD 499.99 (approx. RM2,300), and the Series S 1TB from USD 449.99 (approx. RM2,070) to USD 599.99 (approx. RM2,770). On the higher end, the Series X 1TB Digital climbs from USD 599.99 (approx. RM2,770) to USD 749.99 (approx. RM3,460), while the disc-drive Series X 1TB hits USD 799.99 (approx. RM3,680). In plain terms: waiting until after August means paying significantly more for the same silicon.
The Microsoft Component Crisis: Why Storage Costs Are Exploding
Microsoft’s explanation for the Xbox price increase is blunt: console storage and memory prices have risen by more than 2.5x, with another potential doubling by the fall of 2027. That is not a modest squeeze; it is a full-blown Microsoft component crisis. When flash storage and high-speed memory become this expensive, every extra gigabyte on a fixed-price console starts to hurt the platform holder more than the buyer. According to Microsoft, “the entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles,” because they are “typically not sold at a profit, but instead for less than they cost to make.” In other words, consoles were already subsidised; the component shock has pushed those subsidies beyond what Microsoft is willing to tolerate.
Goodbye 2TB: Fewer Choices, Higher Tiers
The quiet casualty of this price reset is the high-capacity 2TB Xbox model. Microsoft is dropping the 2TB version entirely, withdrawing it from retail shelves worldwide. That matters more than it first appears. While the new prices make every Xbox more expensive, removing the 2TB tier also narrows upgrade paths for storage-hungry players. Instead of stepping up within the official lineup, buyers are pushed toward the remaining, higher-priced 1TB options plus external storage solutions. In practical terms, the console storage costs rising behind the scenes are now shaping what you can buy at all, not just what you pay. It is a sign that platform holders are rethinking generous internal storage as a luxury, not a standard, even as modern games balloon in size and demand ever more space.
Financing, Refurbs, and Trade-Ins: How to Keep Xbox Affordable
Microsoft knows this price jump risks putting Xbox outside many budgets, so it is rolling out consumer-friendly bandages—even if they do not cure the underlying problem. The company is expanding Buy Now, Pay Later options through its own store, offering structured payments instead of a single hit. Buying via Amazon can include interest-free financing for one year, smoothing the impact of the higher sticker price. At the same time, Microsoft is working with retailers on cheaper “previously played” consoles and selling Xbox Certified Refurbished Consoles at up to USD 100 (approx. RM460) off the standard price. These moves help restore some gaming hardware affordability, but they also show how owning a console is shifting from a simple cash purchase to a mix of credit, trade-ins, and refurbished hardware.
Gaming Is Getting Expensive Everywhere—and What Players Should Do Now
Xbox owners are not alone in feeling the squeeze. Sony has raised PlayStation 5 prices by up to USD 150 (approx. RM690), pointing to “continued pressures in the global economic landscape,” while the cost of the next Switch will climb by USD 50 (approx. RM230). Valve’s handheld hardware is also more expensive, with some models jumping by as much as USD 300 (approx. RM1,380). Taken together, gaming hardware affordability is under pressure across the board, especially as AI demand competes for the same components that consoles use. If you are planning an Xbox purchase, the uncomfortable truth is that buying before August is the simplest way to avoid paying more for identical hardware. After that, the smartest play is to combine financing, trade-ins, and refurbished units whenever possible—because this wave of price hikes is unlikely to be the last.
