Microsoft hikes Xbox prices for the third time in a year
Microsoft Announces Third Xbox Price Hike in Just One Year
If you have been keeping an eye on your gaming budget, you might want to brace yourself. Microsoft has just announced another round of price increases for its Xbox console lineup. This marks the third time in just twelve months that the company has adjusted its pricing, leaving many gamers frustrated by the rapidly rising cost of entry.

The latest update hits the 512GB models with a $100 price jump, while the 1TB models are seeing an even steeper $150 increase. Meanwhile, the 2TB version is being phased out entirely. Here is a breakdown of the new pricing structure:
| Model | New Pricing | Previous Pricing |
|---|---|---|
| Xbox Series S (512GB) | $499 | $399 |
| Xbox Series S (1TB) | $599 | $449 |
| Xbox Series X Digital (1TB) | $749 | $599 |
| Xbox Series X (1TB) | $799 | $649 |
Microsoft is pointing to the rising costs of memory and storage components as the primary driver behind these hikes. However, it’s hard not to notice the irony: those same components are in high demand largely because of the massive growth in AI datacenter infrastructure—a field where Microsoft is one of the biggest players. It is a classic case of market supply and demand coming full circle, though that offers little comfort to those just looking to pick up a new console.
Is there a silver lining? Well, if you look at the current market, these consoles are technically still more affordable than the high-end Steam Machines that recently hit the scene. Plus, you still get a controller in the box, which is something. Still, for many, this third hike might be the one that finally makes them rethink their next console purchase.