Microsoft is raising the price of its Xbox consoles again, the third such increase since 2025, according to Kenneth Shepard at Kotaku (via Techmeme).
The new prices take effect August 1st. According to The Verge, 512GB models will cost $100 more, while 1TB models will cost $150 more. That pushes the Xbox Series S to a starting price of $499.99, and the disc-drive-free Xbox Series X to $749.99.
Microsoft attributed the move to soaring component costs, CNBC reports. Notably, CNBC says Microsoft's announcement followed Apple's own price hikes for MacBooks and iPads — a sign that rising parts costs are squeezing the broader hardware industry, not just gaming.
There's an awkward wrinkle to the story. Engadget frames the increase by noting that Microsoft itself "helped drive up component costs" — suggesting the company's own demand for parts contributed to the price pressure it now cites as the reason for charging customers more.
To soften the blow, Microsoft is also introducing a "Buy Now, Pay Later" option, according to Kotaku via Techmeme, letting buyers spread the cost over time rather than paying the higher sticker price up front.
Why it matters: Game consoles have long been sold cheap — sometimes at a loss — with companies betting on profits from games and subscriptions, so repeated price hikes signal that the economics of hardware are shifting in ways that will hit ordinary shoppers' wallets.