Think Xbox's price rise is bad? New boss confirms it could double by end of next year
We're in for a fairly torrid gaming time
It's been a rough year for gaming hardware, with prices that just keep on rising, but Xbox's latest round of hikes is arguably the most shocking yet. That isn't because they're unexpected (they're very much not), but rather because they push pretty much all of Xbox's current-generation hardware into territory where you'd be hard-pressed to recommend that anyone at all should buy them.
The announcement was made in typically low-key fashion, in the form of a blog post on Xbox Wire, and there's no sugar-coating it. The post confirmed that on 1 August 2026, Xbox's 512GB consoles will get a $100 rise, while 1TB versions will go up by $150.
The damage that this set of price rises will do is perhaps underlined by the fact that Xbox didn't then do the math for its readers, but here's what the hikes actually look like in practice:
- Xbox Series S (512GB): Up from $399.99 to $499.99
- Xbox Series S (1TB): Up from $449.99 to $599.99
- Xbox Series X Digital (1TB): Up from $599.99 to $749.99
- Xbox Series X (1TB): Up from $649.99 to $799.99y
Those are prices that are almost impossible to swallow, in all honesty, and they're particularly terrible where the Xbox Series S is concerned. Once Nintendo's price rises come into force in September, the Series S will be the same price as the Switch 2, and there's no planet where I'd recommend the former over the latter.
Meanwhile, $750 for an Xbox Series X also looks fairly laughable when compared to the PS5 Pro for $100 more, and again, there's no way I'd point anyone towards Xbox's console when the comparison is made. If you bring the standard PS5 into play at $599 (for now), there's just no competition whatsoever.
Xbox's blog post is full of explanations for the hikes, with the biggest being the rise in memory component costs, as we all know by now – although in this case, Microsoft itself is obviously a big driver of the AI boom that's fuelling the crisis, something that isn't acknowledged.
Perhaps the most important part of the post, though, is the second half of this line: "Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027."
That's right, folks – this is far from the end of things, and if that doubling comes to pass in the next 12 months, we might get to the point where once mainstream consoles are priced at genuinely luxury levels. People have been speculating about $1,000 PS6s, but at this rate, the Xbox Series X might get to that point well before a new generation of consoles is ready.
That should worry basically anyone interested in console gaming – the market wasn't built up around consoles priced this prohibitively, and there's no way the impacts of unaffordable hardware don't ripple out over time. Xbox is already bleeding badly from a console war that was honestly already lost midway through the Xbox One era, but this could be another dismal turn.
With a scattergun approach to exclusive titles now leading to unpredictability about its biggest franchises, and layoffs happening left, right and centre in studios that it owns, Xbox is in full-blown crisis, whatever it's projecting in press releases.
It probably does need the reset that it claims to be going through, but it's hard to know what'll come out of that process. The Xbox Series S was intended to be a cheap entry point to get people hooked on Game Pass, but when it's $500, and Game Pass is no longer the top priority, where does that leave things?
We might know more in a year or so, as its plans for the next generation continue to leak and be reported on, but right now, there's only really one thing I can say – buying an Xbox just went from an interesting choice to a downright bad idea.
