Microsoft has announced global price increases for its Xbox gaming consoles from 1 August 2026.
The company said the move follows steep increases in storage and memory prices, which it expects to continue.
The price of 512GB Xbox consoles will rise by $100.
The 1TB model will increase by $150 worldwide.
Microsoft also said it will sunset the 2TB model.
The company said it had hoped to avoid another increase after raising Xbox console prices in the United States last October.
“Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027,” Microsoft said.
Component costs hit consoles
Microsoft said the broader consumer electronics industry is under pressure from rising component costs.
However, it said the impact is especially difficult for gaming consoles.
The company said consoles are different from phones, computers, speakers and other devices because they are usually not sold at a profit.
Instead, they are often sold for less than they cost to make.
Microsoft said the sharp rise in storage and memory prices had made the current pricing structure harder to maintain.
Payment options highlighted
The company said it is working on ways to keep Xbox consoles accessible to players despite the increases.
Microsoft pointed to Buy Now, Pay Later options on eligible Xbox hardware purchases through Microsoft Stores.
It said those options would allow buyers to split payments.
The company also said customers buying eligible Xbox hardware through Amazon could use interest-free financing for up to a year.
Microsoft said it is also speaking to retail partners about programmes that would offer pre-owned consoles at lower prices.
Players who want to upgrade or no longer use their console may be able to trade it in with participating retailers for cash or store credit.
Refurbished consoles available
Microsoft also highlighted certified refurbished Xbox consoles available through Microsoft Stores.
It said these could be bought for up to $100 less than the recommended retail price.
The company said the Xbox Series S remains the lowest-cost console option for players.
Microsoft said upcoming and current major titles available on Xbox include Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved and Madden NFL 27.
For South African gamers, the global increases could mean higher import and retail prices once the new pricing takes effect.