Xbox prices are increasing by up to €200 or £170
In June 2026 Microsoft announced a new tier of price adjustments for its current Xbox lineup in the EU and UK. The base 512 GB Series S jumps from €349.99/£299.99 to €499.99/£429.99, a 43 % increase. The 1 TB Series S follows suit, moving from €399.99/£349.99 to €599.99/£519.99, while the digital 1 TB Series X climbs from €549.99/£449.99 to €749.99/£619.99. The flagship 1 TB disc‑drive model, previously €599.99/£499.99, now costs €799.99/£669.99, a rise of over 30 %. This is the third price revision since May 2025 and coincides with the discontinuation of the 2 TB variant, which Microsoft cites a “storage crunch” as the reason for retiring. The cumulative effect is that the top‑end console now costs roughly $300 more than its $499.99 launch price in 2020.
These hikes arrive against a backdrop of soaring component costs, especially DRAM and NAND flash, driven by the AI boom that has strained supply chains. While Sony and Nintendo have also nudged prices upward, Microsoft’s adjustments are proportionally larger, reflecting both higher baseline margins and a strategic shift toward monetizing hardware after a period of aggressive pricing to grow its install base. The price escalation also underscores Microsoft’s reliance on Xbox Game Pass to smooth revenue; by making the console more expensive, the company may be nudging new buyers toward subscription models that guarantee recurring income.
Looking ahead, the price spikes could dampen console adoption in price‑sensitive markets, potentially ceding ground to rivals who keep entry‑level hardware affordable. Consumers may respond by holding onto older consoles longer or opting for cloud gaming alternatives. Microsoft’s next moves—whether it introduces a lower‑cost “lite” variant, accelerates the rollout of larger‑capacity SSDs, or bundles Game Pass more aggressively—will be critical signals of how it intends to balance hardware revenue with ecosystem growth.
Key Takeaways
Xbox hardware in Europe now costs up to €200/£170 more than a year ago, with the 1 TB Series X hitting €799.99/£669.99.
The price hikes represent the third increase since mid‑2025 and accompany the retirement of the 2 TB model.
Component shortages linked to AI workloads are the primary driver behind the steep price adjustments.
The steepening cost may push consumers toward Xbox Game Pass subscriptions or alternative platforms, testing Microsoft’s ecosystem resilience.
About the Source
This analysis is based on reporting by The Verge. Here is a short excerpt for context:
When Microsoft announced its latest round of Xbox price bumps in June, it only gave US pricing. Now we know the pricing increases for the EU and UK, and they're dramatic. Depending on the model, Xbox prices are increasing by up to €200 or £170. The 1TB Xbox Series X with a disc drive is going up by over 30 percent from £499.99 / €599.99 to £669.99 / €799.99. The 512GB Xbox Series S is getting a price increase of over 43 percent, jumping from £299.99 / €349.99 to £429.99 / €499.99. While other consoles have received price bumps as RAM and storage prices skyrocket due to demand from the AI industry, none have been quite as dramatic as Microso … Read the full story at The Verge.Read the original at The Verge
