Microsoft raises Xbox console prices by up to $150, blaming soaring memory costs tied to AI demand

Microsoft announced on June 25 that Xbox console prices will rise worldwide on August 1, with 512GB Xbox Series S models going up $100 to $500 and 1TB models rising $150. The Xbox Series X Digital will reach $750 and the standard Series X $800. The 2TB Series X is being discontinued.

Updated XBOX Console Prices: https://t.co/aFezecPGp7 — XBOX (@XBOX) June 25, 2026 The increase came after Apple announced price hikes for its MacBook and iPad models by up to $300, positioning Microsoft as the second big manufacturer to hike prices due to AI supply-side pressure. According to a post on Xbox Wire, “console storage and memory costs are up by 2.

5 times” and that this will double again by Fall 2027. It noted that this “is especially problematic for consoles” due to the fact that consoles are usually sold for less than production costs. The Series S launched at $300 in 2020.

After August 1, it will cost $500. The standard Series X cost $500 at launch in 2020. It will now cost $800.

AI memory crunch drives Xbox prices higher This is Microsoft’s third Xbox price increase since May 2025. The first came alongside the company’s Q3 earnings call last year. The second was a $20 to $70 bump in October 2025.

The June 2026 hike is the largest. Xbox CEO Asha Sharma has previously said component costs have risen fivefold over two years, per Yahoo Finance. Forbes contributor Paul Tassi noted the irony that big tech, including Microsoft, is pouring capital into the same AI infrastructure that is now driving up costs on its own consumer hardware.

Memory suppliers including Micron and SK Hynix have prioritized high-bandwidth memory for AI servers, leaving less standard DRAM for consoles, phones, and laptops. As Cryptopolitan reported yesterday, Micron is sitting on a $22 billion AI memory backlog after a fiscal Q3 earnings beat. Cook told the Wall Street Journal in an interview on June 17 that the memory crisis driven by AI was a “100-year flood,” which is unprecedented in his 40 years in t