Microsoft Escalates Xbox Pricing Amid Rising Component Costs

The Xbox Series S will now retail at $499.99, while the disc-less Xbox Series X moves to $749.99 and the standard disc-drive model climbs to $799.99. Alongside these changes, Microsoft confirmed plans to discontinue the 2TB Xbox Series X. The company maintains that consoles are typically sold at a loss, unlike other consumer electronics, making them uniquely vulnerable to the ongoing component crisis that has forced similar adjustments across the tech sector, including at Apple.

To mitigate the impact on consumers, Microsoft is rolling out new purchasing initiatives, including buy-now-pay-later schemes and interest-free financing through Amazon. The firm is also coordinating with retail partners to facilitate a market for refurbished consoles at lower price points. These increases mark a sharp departure from the 2020 launch prices of $299 for the Series S and $499 for the Series X, reflecting a broader industry trend of rising hardware costs over the past several years.