Microsoft hikes Xbox Series X, Series S prices for third time since 2025 as memory shortage pushes costs higher

The price of Microsoft's Xbox consoles is set to rise once again, with the company announcing fresh increases across the Xbox Series X and Series S lineup from August 1. The decision marks Microsoft's third price hike since May 2025 and reflects mounting pressure on console makers from a prolonged global memory shortage that has driven up manufacturing costs.

The latest increases come as the gaming industry faces one of its most expensive hardware cycles in recent years. Alongside higher component prices, tariffs and supply chain challenges have prompted several major manufacturers to rethink pricing, making gaming consoles increasingly costly for consumers.

Xbox Series X and Series S prices rise again

Under the revised pricing, the Xbox Series S 512GB will cost US$500 (approximately Rs 43,000), while the 1TB variant will retail for US$600 (approximately Rs 51,600). The Xbox Series X Digital Edition with 1TB of storage will now be priced at US $750 (approximately Rs 64,500), while the standard Xbox Series X with a disc drive will cost US $800 (approximately Rs 68,800).

More from Tech

Microsoft also confirmed that it is discontinuing the 2TB version of the Xbox Series X, reducing the number of hardware variants available.

Explaining the decision in a blog post, the company said it had spent several months working with suppliers in an attempt to avoid another increase but ultimately found it unavoidable due to rapidly rising component prices.

"Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027," Microsoft said.

According to the company, gaming consoles have been particularly affected because they rely heavily on high-performance memory and storage components. Microsoft noted that similar cost pressures have also affected other consumer electronics categories.

To soften the impact of higher prices, the company also introduced buy now, pay later and zero-interest financing programmes, describing them as measures aimed at making Xbox consoles more accessible despite the increased retail prices.

Console makers across the industry face rising costs

The latest increase follows two earlier revisions. Microsoft first raised Xbox prices in May 2025, shortly after the Trump administration introduced tariffs on imported goods. A second round of increases followed in October as the global memory shortage worsened.

The pricing pressure is not limited to Xbox.

Sony has increased PlayStation 5 prices twice over the past year, first in August and again in March, citing similar cost pressures. Nintendo has also adjusted pricing, raising the price of the original Switch last year and confirming that the Switch 2 will become more expensive from September.

Meanwhile, newly launched hardware is also reflecting the changing economics of the gaming industry.

Earlier this week, Valve announced that its upcoming Steam Machine will start at US $1,049 (approximately Rs 90,200). The price surprised many gamers because the company had previously suggested the console would be positioned alongside rival home gaming systems. Instead, the entry-level model will debut at around US $150 (approximately Rs 12,900) more than Sony's PlayStation 5 Pro. Valve also increased the price of its Steam Deck handheld gaming PC last month.

The repeated price revisions across Microsoft's Xbox lineup, Sony's PlayStation consoles, Nintendo's Switch family and Valve's gaming hardware point to an industry-wide challenge rather than an isolated decision by any single manufacturer.

With Microsoft warning that memory prices could double again by autumn 2027, consumers may continue to face higher hardware prices for the foreseeable future, even as console makers introduce financing options to ease the burden of increasingly expensive gaming devices.