Overview
- Microsoft announced Thursday, June 25, 2026, that list prices for Xbox consoles will rise worldwide on August 1, 2026, by $100 for 512 GB models and $150 for 1 TB models and that the 2 TB Xbox will be retired.
- The company said storage and memory costs have climbed roughly 2.5 times and warned those prices could double again by fall 2027, a rise it tied directly to the decision to raise console prices.
- Reports and industry comments link the squeeze to strong demand from AI and data‑center customers for advanced memory and SSD capacity, with suppliers such as Micron and SK Hynix prioritizing high‑end parts.
- To soften the impact on buyers, Microsoft rolled out financing and buy‑now‑pay‑later options, trade‑in programs and Xbox Certified Refurbished units with discounts up to $100, and noted it had already raised U.S. prices in October 2025.
- Markets reacted to the announcement with Microsoft shares falling a few percent and analysts warn the component squeeze could force similar price moves across consumer electronics and raise local prices sharply in countries like Mexico.