Even Fan-Favorite CEO Asha Sharma Couldn’t Save Xbox From Soaring AI-Era Prices

Microsoft has announced another round of global Xbox price hikes effective August 1. Thanks to rising storage and memory costs, 512GB Xbox models will increase by $100, while 1TB versions will increase by $150. This marks the third major price increase in just over a year.

Here are this August’s prices in the United States:

• 512GB Xbox Series S: $499.99  

• 1TB Xbox Series S: $599.99  

• Xbox Series X Digital: $749.99  

• Standard Xbox Series X: $799.99 (up from $499.99 at launch in 2020) 

The company will also discontinue its 2TB Xbox Series X model.

These are some difficult prices to swallow, especially when you consider that the standard Xbox Series X “only” cost $499.99 when it launched in 2026. Now it’s 60% more expensive.

Microsoft says memory and storage components now cost more than 2.5x what they did when the Xbox Series X|S launched and could double again by fall 2027. Console makers feel this pressure sharply, as they often sell hardware at or below manufacturing cost and depend on game sales for actual profit.

This is the first big price hike in new CEO Asha Sharma’s tenure, who has spent the last few months trying to steady the brand with a clearer content roadmap, better PC integration, and more flexible Game Pass subscription options. She even said recently that the market needs more affordable gaming consoles.

Now she needs to convince gamers that, even with pricey Xbox consoles, the value of Game Pass, cloud access, and regular first-party games justifies the extra expense.