Microsoft has announced a steep worldwide price hike for their current-generation hardware. Starting August 1, 2026, prices will jump by $100 for all 512 GB models and a staggering $150 for 1 TB models. To make matters worse, the premium 2 TB variant will be discontinued altogether.
This isn't the first time gamers have had to dig deeper into their pockets; Microsoft previously raised U.S. console prices by $20 to $70. While the tech giant claims it tried to prevent another increase, a resurfacing component crisis ultimately forced their hand. Microsoft continuously emphasizes that it does not make a profit on hardware alone, stating they are currently losing too much money on every single Xbox sold.
The Hardware Struggle
We are seeing a broader trend in the industry where affordable hardware is becoming increasingly difficult to sustainedly produce. Valve recently faced similar backlash with its latest hardware announcements, where hopes for a gaming machine well below the $1,000 mark were crushed by a high introduction price.
Microsoft’s 'Accessibility' Programs
To soften the blow, Microsoft is introducing several financing and hardware programs to make entering the Xbox ecosystem slightly more manageable:
- Buy Now, Pay Later: Microsoft Store purchases for eligible Xbox hardware can now be broken up into short-term, interest-free installments.
- 0% APR Financing via Amazon: Players purchasing through Amazon can take advantage of 0% APR financing for up to 12 months to lower their monthly payments.
- Trade-In & Previously Played Consoles: Microsoft is partnering with retailers to launch a refurbished trade-in program. Gamers can trade in old hardware for cash or store credit, allowing retailers to resell used consoles at lower price points.
- Certified Refurbished: Xbox Certified Refurbished Consoles will remain available directly through the Microsoft Store, offering up to $100 off the MSRP.
This article was written by a human.
Disclaimer: All content is created with the help of AI. Be aware of possible hallucinations or factual errors. When in doubt, always check with official sources.
