Video Game History

Microsoft significantly increases Xbox prices worldwide and withdraws 2TB model citing "components crisis"

Microsoft has announced that it is increasing the price of Xbox worldwide from August 2, blaming increased costs for console storage and memory. The 512 GB models will increase by $100 and the 1TB model will increase by $150; the 2TB variant will be withdrawn. The company did not immediately confirm pricing for non-US markets.

In a blog post, the company referred to its previous price increase in October and said that while it had hoped another price increase would not be necessary, "console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles."

"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."

In the announcement the company highlighted "programs to make Xbox consoles more accessible", including a buy now, pay later option for purchases through the Microsoft Store, interest free financing through Amazon, and "working with retail partners on new programs to provide previously played consoles at lower prices." It also pointed out that "Certified Refurbished Consoles are available at Microsoft Stores for up to US$100 off MSRP."