Microsoft has made an announcement about the upcoming increase in the price of Xbox consoles globally due to increased costs of parts and continued pressures on the global semiconductors supply chain.
Starting August 1, 2026, the new price will take effect and will affect gamers in major countries such as India. According to the company, the price of the Xbox consoles having 512GB storage will go up by $100 whereas the Xbox consoles with 1 TB will get more expensive by $150. It has been reported that the company will end its production of 2 TB Xbox console models.
This comes in the wake of the second price increase by the company for the Xbox consoles in one year and amid increasing demand for high-quality memory and storage components mainly due to artificial intelligence technology development.
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According to a statement by Microsoft, the company wishes to keep away from increasing prices but could not because of increased pressure on the component prices.
Why Microsoft is raising Xbox prices
Microsoft attributed the decision to what it described as a broader "components crisis" affecting the consumer electronics industry.
"Unlike smartphones, computers and several other consumer electronics products, gaming consoles are traditionally sold at very low margins and, in some cases, below manufacturing cost," the company said.
Website/ Xbox official Industry analysts note that demand for advanced storage chips and memory modules has surged due to investments in AI infrastructure, placing additional pressure on supply chains and manufacturing costs.
The announcement also comes as investors closely watch developments in the global semiconductor market, where rising costs have affected everything from smartphones and PCs to gaming hardware.
What the price hike means for India
This new increase is projected to affect the Indian customers as the Xbox consoles are already available for purchase in limited numbers in authorized retail outlets in India.
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At present, the Xbox Series S (512GB) is available at a price tag of ₹34,990 and the Xbox Series X (1TB) is priced at ₹55,990. According to the new pricing strategy, the cost of Xbox consoles in India is likely to go up by ₹9,000 to ₹14,000; however, the new pricing in India has not been disclosed by Microsoft yet.
According to reports, local market conditions along with taxes and costs of importing can affect the final pricing in other countries.
This new price increase has come at a time when there are high manufacturing costs, currency fluctuations and changing demands of the consumers from the manufacturers of gaming hardware.
FAQs
Why is Microsoft increasing Xbox console prices worldwide?
As per Microsoft, the rising costs of storage and memory, which has risen because of demand for artificial intelligence, has led to an increase in Xbox console prices worldwide.
Q2. How much could Xbox prices increase in India?
While Microsoft has not announced India-specific pricing, estimates suggest Xbox consoles could become costlier by around ₹9,000 to ₹14,000 depending on the model.
