Microsoft has increased the price of its Xbox Series X and Xbox Series S consoles once again, marking the third price hike since the current generation launched. The latest increase took effect on August 1, 2026, with Microsoft pointing to the ongoing global DRAM memory shortage as the primary reason behind the higher prices.
Unlike previous increases, which were largely linked to tariffs and changing trade policies, this latest adjustment reflects the rising cost of memory components as AI infrastructure continues to consume huge amounts of global DRAM production.
AI Demand Continues to Drive Hardware Costs
The worldwide DRAM shortage began in late 2025 after demand for AI servers and data centers surged. Large technology companies have been purchasing enormous quantities of high-performance memory, leaving fewer components available for consumer electronics.
That shortage has affected far more than gaming consoles. Prices have increased across products that rely heavily on memory, including:
- Gaming PCs
- RAM modules
- SSD storage
- Graphics cards
- Smartphones
- Tablets
- Smart devices
- Video game consoles
Several hardware manufacturers have already warned that elevated memory prices could become “the new normal” rather than a temporary market fluctuation.
Xbox Prices Rise Across Multiple Regions
The biggest increases can be seen across Microsoft’s entire Xbox lineup.
United States
- Xbox Series S 512GB: $499.99 (previously $399.99)
- Xbox Series S 1TB: $599.99 (previously $449.99)
- Xbox Series X Digital 1TB: $749.99 (previously $599.99)
- Xbox Series X Physical 1TB: $799.99 (previously $649.99)
United Kingdom
- Xbox Series S 512GB: £429.99 (previously £299.99)
- Xbox Series X 1TB Disc: £669.99 (previously £499.99)
Europe
- Xbox Series S 512GB: €499.99 (previously €349.99)
- Xbox Series X 1TB Disc: €799.99 (previously €599.99)
All prices are listed before local taxes and retailer fees.
2TB Xbox Series X Has Been Discontinued
Microsoft has also confirmed that production of the 2TB Xbox Series X has ended.
The decision comes as rising component costs make higher-capacity models increasingly expensive to manufacture. By reducing the number of premium models, Microsoft appears to be simplifying production while managing the impact of expensive DRAM and storage components.
How Xbox Now Compares to the Competition
Even after these increases, Microsoft’s most expensive standard console still remains below Sony’s flagship hardware.
- PlayStation 5 Pro: $899.99
- Xbox Series X Physical 1TB: $799.99
Meanwhile, the Xbox Series S 512GB will soon cost the same as the Nintendo Switch 2, which is also scheduled to receive a price increase later this year.
The result is a market where every major console manufacturer has either raised prices already or is preparing to do so.
Console Gaming Is Becoming More Expensive
For years, console prices typically fell as hardware matured. This generation has taken the opposite direction.
Instead of becoming cheaper over time, the Xbox Series X and Series S have now seen multiple price increases since launch. Combined with rising accessory costs, more expensive games, and subscription services, the total cost of entering the current console generation continues to climb.
As long as memory shortages remain and AI demand continues to dominate DRAM production, consumers may have to prepare for hardware prices that stay higher than many expected.
