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Microsoft increased the prices of Xbox Series X and Series S consoles across the UK and several European markets, with the revised pricing taking effect in early August 2026. The latest hike raises prices by as much as €200 or £170 depending on the model, making it one of the company's largest console price adjustments to date. Microsoft said that the move is driven by soaring memory and storage component costs, which have been exacerbated by growing demand from the AI industry.
The updated pricing affects nearly every current Xbox console. Microsoft has also confirmed that it is discontinuing the 2TB Xbox model as part of the latest product lineup changes.
According to Microsoft, the increase reflects broader challenges across the technology industry rather than a change in its gaming strategy. The company said storage and memory costs have risen more than 2.5 times compared with previous levels and are expected to remain high through 2027.
Increasing investments into AI infrastructure have raised the need for sophisticated memory and storage chips, and thereby increased the burden on the world’s supply chain. Microsoft noted that similar cost pressures have affected other consumer electronics manufacturers, leading several gaming companies to revise hardware pricing in recent months.
Also Read: Xbox Revenue Drops 10% as Microsoft Bets Big on AI, Cloud Businesses
This latest hike comes after the third major revision to the Xbox pricing in 2025, which is a shift away from the usual norm that gaming consoles become cheaper as they age. While Microsoft will still provide financing and refurbishment of the consoles in selected countries, this price hike might put off cost-sensitive customers who want to upgrade or buy a new Xbox.
As the current console generation enters its later years, the revised pricing is expected to play a key role in consumers' purchasing decisions, particularly as they compare Xbox with competing gaming platforms.
