Microsoft raised Xbox Series X|S prices again on August 1, citing a DRAM shortage that has driven memory and storage costs up more than 2.5 times. All 512 GB models climb $100, while 1 TB versions add $150. The company also drops the 2 TB SKUs, saying the pricing no longer makes sense. The adjustment follows a June 25 notice that warned of further increases later this year.

New price tags list the 512 GB Series S at $499.99 and the 1 TB model at $599.99; the 512 GB Series X Digital now costs $749.99 and the 1 TB Series X $799.99. Sony’s PS5 sits at $649.99 for the standard edition, $599.99 for Digital, and $899.99 for the Pro, positioning Xbox slightly lower on the high‑end tier. The gap narrows with the PS5 Pro now $100 above Xbox’s top model.

The hike arrives weeks before Xbox’s 2025 fiscal year close and just after Sony’s price jump, which sparked a pre‑increase buying surge that broke 2026 sales records. Analysts see the move as a pressure valve on shrinking margins, especially as reports warn of layoffs at Xbox Game Studios amid declining revenue. Microsoft may push subscriptions to offset.