Xbox Prices Jump Again as Console Costs Keep Climbing

June 26, 2026 - 13:17

Microsoft announced a price hike for the Xbox Series consoles today, the third increase in just over a year. Starting August 1, the Xbox Series S, which originally launched in 2020 for $300, will now cost $500 in the U.S. The Xbox Series X, which debuted at $500, will jump to $800.

This follows Sony's PlayStation 5 price increases this spring and a planned price bump for Nintendo's Switch 2 coming in September. the video game industry has seen eight price hikes in the first six months of 2025 alone.

Console prices had stayed flat for years across multiple generations. That pattern has now reversed. Prices used to drop over the life of a console generation. Not anymore.

Microsoft explained the reasoning behind the latest increase. The company said it hoped another price hike would not be necessary and spent months working with suppliers on alternatives. Unfortunately, console storage and memory prices have gone up by more than two and a half times. Microsoft expects another doubling by fall 2027. The entire consumer electronics industry faces a components crisis, but consoles are hit especially hard. Unlike phones, computers, and speakers, consoles are typically sold at a loss. They cost more to make than they sell for.

This problem extends beyond gaming. Apple also announced price increases on its computers and tablets today.

In other industry news, Bungie laid off most of its Destiny development team along with some workers on Marathon, the upcoming game from the Sony-owned studio. A WARN notice filed by Sony in Washington State counted 292 workers affected, effective next month. That number only covers jobs in Washington and does not include cuts elsewhere.

PlayStation studios chief Hermen Hulst said the decision came after extensive discussion and careful consideration. He explained that Sony and Bungie leadership reviewed the studio's long-term direction, development priorities, and resource needs. They explored multiple alternatives before deciding a reduction was necessary to align resources with current priorities.

Sony bought Bungie for $3.7 billion in 2022. At the time, Destiny 2 was losing popularity. Marathon launched earlier this year to good reviews but got off to a slow start. Bungie remains known for making excellent shooters, but Destiny fans have been mourning the winding down of Destiny 2. Many have expressed confusion over reports that Destiny 3 is not in active development.