Microsoft’s Xbox blog:
Effective August 1, 2026, we will be updating prices worldwide.
The price of XBOX consoles will increase by US$100 for 512 GB
models and US$150 for 1 TB models. We will also be sunsetting our
2 TB model.Last October, we increased XBOX console price by $20-$70 in the
U.S. We hoped another price increase would not be necessary, and
we have spent the last several months working with suppliers on
options. Unfortunately, console storage and memory prices have
increased by more than 2.5× and we expect another doubling by the
fall of 2027. The entire consumer electronics industry is
struggling with the current components crisis, but the effects are
particularly hard on consoles. Unlike phones, computers, speakers,
and other consumer devices, consoles are typically not sold at a
profit, but instead for less than they cost to make.
I’m not offended they’re increasing prices. I’m offended only that they want people to style “Xbox” in all caps. And cry me a river regarding that “typically not sold at a profit” line they love to pull out.
What’s most telling is that Microsoft is sunsetting the high-end Xbox model with 2 TB of storage, not the low-end 512 GB one. High-end configurations typically have the highest profit margins. Not in this crisis, however. That’s similar to the way that Mac Studios with the M3 Ultra are now only available with the base RAM configuration: 96 GB. When the M3 Ultra chip debuted in March 2025, Apple offered upgrades to 256 and 512 GB of RAM for $1,600 and $4,000 respectively. Now they don’t offer those tiers of RAM at any price. The only way to buy a Mac Studio with more than 96 GB of RAM is to buy a used one — which eBay sellers are offering for $25,000 to $30,000.
