Microsoft Raises Xbox Prices Again on Memory Costs, Shares Fall 4%

Microsoft announced further Xbox console price increases effective August 1, 2026, citing surging storage and memory costs tied to AI-driven shortages. The Xbox Series S 512 GB model rises $100 to about $500, the 1 TB version increases $150, entry-level Series X starts near $750, and the 2 TB model is discontinued. This marks the third U.S. price hike since May 2025, following component prices rising more than 2.5x with another doubling expected by fall 2027. Microsoft is expanding financing and refurbished programs to mitigate demand pressure. Shares fell nearly 4% as investors assessed margin and affordability risks amid similar moves by Apple and console rivals.