Microsoft just drove up Xbox prices as AI creates a memory crunch
- By Zaeem Basir -
- Jun 27, 2026
On August 1st, 2026, all Xbox prices across the globe are getting more expensive due to an astronomical rise in memory and storage chip prices related to the recent AI explosion.
New console prices with updated pricing: Series S: 512GB: $399 -$499 1TB: $449.99 – $599.99 Series X: 1TB Digital Edition: $599.99 – $749.99 1TB Disk Edition: $649.99 – $799.99 Microsoft announced today that it will also be dropping the 2TB model Xbox Series X.
The reason why: AI demand pushes up memory chip prices Microsoft said the costs of storage and memory chips have “already more than doubled” and are “expected to more than double again by fall 2027”.
According to Microsoft, “The key driver… are the substantial needs of the AI sector which has become a primary customer of the highest bandwidth memory and largest storage chips,” meaning, “with supply to such critical customers and for a major player such as Nvidia taking precedent, consoles are in a very serious components crisis.
What distinguishes consoles… is that generally they are sold for less than they cost, not as value products,” says Microsoft.
It’s the third time since 2025 this has happened This marks the third price hike for the Xbox since February 2025; its previous one of up to $70 on some models happened October 2025. Microsoft said it “invested months in dialogue with our partners” to prevent it. Sony also increased the prices of the PS5 by nearly 100 euros across Europe in April.
Even Apple announced similar price jumps for their MacBooks and iPads on the same day.
How Microsoft is cushioning the impact Microsoft said it’s offering new payment methods and lower-priced alternatives for customers: Buy now, pay later at Microsoft Store (0% interest installments) 0% interest financed payment plan with Amazon (up to 12 months) Certified refurbished and pre-owned Xbox consoles at reduced prices Just in time for Grand Theft Auto 6 This latest price surge occurs mere months before the release of Grand Theft Auto 6 on November 19, 2026.
The highly anticipated game is widely expected to boost sales of Xbox and PlayStation consoles dramatically.