The attack on gamer’s wallets continues with another price increase announced today. This time it is Microsoft announcing that Xbox will be getting yet another increase. Beginning on August 1st, prices for both Xbox models will be going up. The price for the 512GB models will go up $100. The price for the 1TB models will be going up $150. The 2TB model will be going away entirely, so if you want that particular model, buy it before it sells out.

Here is a direct quote from Microsoft about the price increase:

“Last October, we increased XBOX console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, 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.”

To go along with this announcement, Microsoft also announced different financing programs to try and help with the cost.

• Buy Now, Pay Later: The first option is Buy Now, Pay Later. This is on eligible XBOX hardware purchases through Microsoft Stores, making it possible to break up your payment into predictable, short-term, interest-free installments.
• Interest Free Financing: Players purchasing eligible Xbox hardware through Amazon can take advantage of 0% APR financing for up to 12 months, giving players more flexibility with lower monthly payments and more budgeting control.

• Previously Played Consoles: Microsoft is working with retail partners on new programs to provide previously played consoles at lower prices. Players who are ready to upgrade or no longer use their console can trade it in at participating retail partners for cash or store credit. Those consoles will then be made available at lower prices for players.
• Certified Refurbished Consoles: Xbox Certified Refurbished Consoles are available at Microsoft Stores for up to US$100 off MSRP.

If you are someone who is in the market for an Xbox, be sure to buy one before August 1, 2026. It is nice that they give players notice five weeks ahead of time because companies don’t always do that but the overall situation is bad in general.

Will you go buy an Xbox before this price increase in August? Tell us what you think on Bluesky and Twitter.