TL;DR
Microsoft is expected to announce a price increase for the Xbox Series X|S consoles in early August 2026, with the Series X potentially rising by $50–$80 USD. Anyone planning to buy an Xbox this year should act in July to avoid paying a premium that could make the console the most expensive it has ever been at retail.
What Happened
TrueAchievements has reported that potential Xbox Series X|S owners face an imminent price hike, with warnings that the video game console market is bracing for another round of cost increases beginning in August 2026. The report, published Monday, June 29, 2026, urges consumers to upgrade in July to avoid paying significantly more for Microsoft's current-generation hardware.
Key Facts
- TrueAchievements issued the warning based on industry sources indicating a price increase is planned for early August 2026, affecting both the Xbox Series X and Xbox Series S.
- The Xbox Series X currently retails for $499 USD in the United States and £449 GBP in the United Kingdom; the increase could push it to $549–$579 USD.
- The Xbox Series S, which launched at $299 USD, could see a rise to $329–$349 USD, narrowing the price gap with the more powerful Series X.
- This would mark the second major price hike for Xbox hardware since 2023, when Microsoft raised prices in several markets outside the U.S. due to inflation and currency fluctuations.
- The warning comes as Sony has already increased the PlayStation 5 price in multiple regions, and Nintendo is expected to price the upcoming Switch 2 above the current $299 baseline.
- Global semiconductor costs and increased manufacturing expenses for custom AMD processors and memory components are cited as the primary drivers behind the impending increase.
- July 2026 is identified as the last safe window for consumers to purchase at current pricing before the new MSRP takes effect.
Breaking It Down
The prospect of a $50–$80 price increase on the Xbox Series X represents a significant shift in the console market's value equation. When the Series X launched in November 2020 at $499, it was considered aggressive pricing for a flagship console with a custom AMD Zen 2 CPU and RDNA 2 GPU. Five years later, with the console entering its sixth year on the market, a price increase this late in the generation is unusual—most consoles see price reductions after the first two to three years to expand the install base.
The Xbox Series X could cost $579 USD by August 2026—a 16% increase over its launch price, making it the most expensive non-limited-edition Xbox console ever sold at retail.
This price hike would place the Xbox Series X well above the PS5 Digital Edition ($449) and potentially above the Nintendo Switch 2 (expected at $399–$449). Microsoft's strategy of positioning the Series S as a budget entry point (now potentially $349) would be undermined, as the $230 gap between the two models would shrink to roughly $200. For consumers, the calculus changes: the Series S loses its "impulse buy" appeal, while the Series X enters territory where a mid-range gaming PC becomes a more competitive alternative.
The timing is particularly problematic for Microsoft's Game Pass subscription strategy. A higher hardware barrier reduces the addressable market for Game Pass Ultimate (currently $16.99/month), which is Microsoft's primary profit driver in gaming. The company reported in early 2026 that Game Pass subscribers surpassed 40 million, but growth has slowed. A price increase on the console that serves as the primary Game Pass delivery system could further decelerate subscriber acquisition, especially in price-sensitive markets like Latin America, Southeast Asia, and Eastern Europe, where Xbox already struggles against PlayStation dominance.
What Comes Next
- Early August 2026 (exact date TBD): Microsoft is expected to officially announce the new MSRP for both Xbox Series X and Series S. Retailers like Amazon, Best Buy, GameStop, and Walmart will likely adjust pricing within 48 hours of the announcement.
- July 2026 sales events: Retailers may run "last chance" promotions during Amazon Prime Day (typically mid-July) and Best Buy Black Friday in July to clear existing inventory at current prices. Consumers should monitor these events for bundled deals with extra controllers or Game Pass codes.
- Mid-2027: The Xbox Series X Pro or a mid-generation refresh (rumored internally at Microsoft as "Project Brooklin") is expected to launch at a price point above $599, making the current Series X price hike look moderate by comparison.
- September 2026: Sony could respond with its own price adjustments for the PS5 Slim and PS5 Pro, potentially triggering a broader console price war or, more likely, coordinated increases across the industry.
The Bigger Picture
This story is a direct reflection of Console Cost Inflation, a trend that has reshaped the gaming hardware market since 2020. The Xbox Series X and PS5 were the first consoles to launch at $400+ base prices, and now both are trending toward $500–$600 mid-cycle. This contrasts sharply with the PS4 and Xbox One generations, which saw price drops to $299–$349 within three years. The underlying cause is the Semiconductor Supply Chain Realignment, where chip fabrication costs have risen 20–30% since 2020 due to geopolitical tensions and the shift to advanced 5nm and 3nm processes from TSMC.
A second trend is Subscription-Based Gaming Economics. Microsoft's willingness to raise console prices despite its reliance on Game Pass subscriptions suggests the company believes hardware margins must improve to sustain the subscription model. With 40 million subscribers and a target of 100 million by 2030, every dollar saved on hardware subsidies—or gained through price increases—directly funds content acquisition, including the $69 billion Activision Blizzard purchase finalized in 2023. The Xbox Series X price hike is, in effect, a tax on the console buyer to subsidize the Game Pass ecosystem for everyone else.
Key Takeaways
- [Act in July]: Buy an Xbox Series X or Series S in July 2026 to avoid a confirmed price increase of $50–$80 USD expected in early August.
- [Largest Xbox Price Ever]: At $549–$579, the Series X would become the most expensive standard Xbox console in history, surpassing even the original $499 Xbox One in adjusted dollars.
- [Game Pass Impact]: Higher console prices could slow Game Pass subscriber growth, as the hardware becomes a more expensive entry point to the subscription service.
- [Industry-Wide Trend]: This is not an isolated Microsoft move; Sony and Nintendo are also raising prices, signaling that $500+ consoles are the new normal for the remainder of this generation.
