Microsoft Raises Xbox Prices for the Third Time This Year

Xbox Console Prices Go Up Again

According to НВ — Техно: Microsoft has announced another price increase for Xbox consoles in the United States-the third such hike since the start of 2025. The decision stems from a sharp rise in memory and storage costs, which have more than doubled. The updated U.S. retail prices are as follows:

• Xbox Series S (512 GB) - $500
• Xbox Series S (1 TB) - $600
• Xbox Series X Digital - $750
• Xbox Series X - $800

This latest adjustment follows previous price changes in May and October of last year. A further twofold increase in component costs is expected by fall 2027. It is worth noting that Sony and Nintendo have also raised prices on their consoles. Valve has acknowledged that the component shortage is affecting the cost of its products, including the Steam Machine.

New Payment Options

In response to shifting market conditions, Microsoft will introduce installment payment plans at its own retail stores, zero-interest financing through Amazon, and the option to buy used or certified refurbished consoles. However, the company has no plans to revive the Xbox All Access program.

After the fiscal year ends on June 30, another round of layoffs is expected within the Xbox division. The head of Xbox Game Studios has stepped down, and studios such as Ninja Theory, Double Fine, and Compulsion Games may face reorganization. Their leaders are currently in discussions with Xbox about spinning off their teams or finding new owners.

This Xbox price hike reflects broader trends in the video game industry, where rising component costs are becoming a major challenge for manufacturers.

Source: industry analysis report

With intense competition in the market, companies are turning to financial incentives to attract customers, which could shape their popularity. The anticipated cuts within the Xbox division also signal that Microsoft is adapting to new market realities, likely influencing its future growth strategy.

The latest price increase for Xbox consoles comes amid significant changes within the company, including potential layoffs and management shifts. As Microsoft navigates these challenges, mass layoffs are anticipated at Xbox, particularly following recent senior executive resignations. This evolving landscape may further impact the gaming division's direction and strategy.