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Surge in memory and storage prices pressures the gaming industry and leads Microsoft to adjust Xbox Series X and Series S consoles in August
The rise in the cost of electronic components has become the main factor behind the new price increase for Xbox Series X and Xbox Series S consoles. Microsoft confirmed the third adjustment in 13 months, driven mainly by the rise in memory and storage prices.
The change begins on August 1st, when the company’s current generation consoles will have a new price list. According to Microsoft, the adjustment follows the increase in production costs caused by the appreciation of essential parts for the manufacturing of the equipment.
Increase in hardware components raises Xbox manufacturing costs
According to Microsoft, the prices of memory and storage used in the consoles have increased more than 2.5 times in recent periods.
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Additionally, the company reported that it expects new pressure on these components until the fall of 2027, maintaining the scenario of rising production costs.
As a result, Xbox models with 512 GB will see an increase of $100. Meanwhile, versions with 1 TB will become $150 more expensive.
Furthermore, Microsoft confirmed the end of the previous version of the console with 2 TB of storage.
The detail behind the increase: technological components have become more contested
The new Xbox price is linked to a larger change in the technology market. Currently, components like memories, SSDs, and storage units have seen a much higher demand.
Moreover, companies involved in the development of artificial intelligence have increased their purchase of these components. Consequently, the pressure on the production chain has increased, and costs have risen.
According to Microsoft, the appreciation of components was one of the main reasons for the console price adjustment.
Recently, Apple also announced increases in most of its products, except for the iPhone line. The company attributed the changes to the increased demand for memory, SSDs, and other technological components.
Xbox accumulates three increases in 13 months after rising production costs
The new adjustment does not represent the first price change made by Microsoft for the current generation consoles.
First, in May 2025, the company increased the prices of the Xbox Series X and Xbox Series S models.
Then, in October 2025, a second increase occurred.
Now, in August 2026, Microsoft applies the third adjustment in just over a year, again influenced by the rising costs of components.
With the update, the standard Xbox Series X now costs $800. Thus, the current price represents an increase of $300 compared to the original launch price in 2020.
Component price increase also changes prices of PlayStation and Nintendo Switch 2
The impact of rising manufacturing costs was not limited to Microsoft.
Similarly, Sony raised PlayStation prices on more than one occasion. Additionally, the Nintendo Switch 2 will have a suggested price of $500 starting in September.
Therefore, the console market faces a different scenario from previous years, when the equipment used to see price reductions throughout the commercial cycle.
Consoles are sold below manufacturing cost, says Xbox
According to Microsoft, video game consoles have a different characteristic from other electronic products.
Normally, these devices are sold for prices lower than the manufacturing cost. However, when essential components like memory and storage become more expensive, the pressure reaches the consumer.
Thus, the new increase in the Xbox Series X and Xbox Series S represents the direct impact of the global rise in costs of electronic components, hardware, and storage.
The information was released by Microsoft in June 2026, through Xbox’s official channels. Additionally, the industry scenario involves movements from companies like Apple, Sony, and Nintendo.
