Microsoft has announced another price increase for the Xbox Series X/S. From August 1st, 512 GB models will cost $100 more, while 1 TB consoles will set you back by an additional $150.
For example, the Xbox Series S 512 GB, which retails for $399.99, will cost $499.99 – the launch price for the Xbox Series X 1 TB back in 2020. The digital Xbox Series X is going from $599.99 to $749.99, while the regular version of the console will cost a whopping $799.99, up from $649.99.
As for the Xbox Series X 2TB Galaxy Black, which retailed for $799.99 after last October’s price hike, it’s being discontinued.
Regarding the reason for these hikes, Xbox said, “We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options.” However, it noted that memory and storage prices have increased by over 2.5 times for consoles and expects them to double again by Fall 2027.
“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles,” it added. “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.”
To help make the consoles more “accessible,” Xbox is announcing a Buy Now, Pay Later option with interest-free installments. Those purchasing through Amazon can also utilize up to 12 months of zero percent APR financing, and Microsoft is coordinating with retailers to offer “previously played consoles” at lower prices.
“Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit. Those consoles will then be made available at lower prices for players,” it said.
Besides the long-term impact this could have on Project Helix, you have to wonder how this will affect the company’s upcoming line-up. Gears of War: E-Day and Clockwork Revolution are especially notable since they were announced as console exclusives (and not timed either). Again, time will tell, but you’d have to think it’s conversation that’s dominating Xbox, especially ahead of the rumored mass layoffs in July.