Xbox Series X|S Prices Rise in UK as Memory Shortage Bites

New Xbox prices take effect in the UK

Microsoft’s latest Xbox console price rise takes effect today, Saturday 1 August, lifting the cost of every current Xbox Series X|S configuration sold through UK retailers. The disc-equipped Xbox Series X now carries a £649.99 price tag, while the entry-level Xbox Series S 512GB reaches £399.99.

The increase was announced on 25 June in an Xbox Wire post, in which Microsoft said it would update prices worldwide from 1 August. The company said 512GB consoles would rise by US$100 and 1TB models by US$150 in the US, while also confirming that it would sunset its 2TB model.

For UK buyers, the new recommended prices are:

• Xbox Series S 512GB: £399.99
• Xbox Series S 1TB: £449.99
• Xbox Series X Digital: £599.99
• Xbox Series X Disc: £649.99

Microsoft is also discontinuing the 2TB Galaxy Black Special Edition. That removes the highest-capacity option from the range at the same time as the standard 1TB Series X becomes more expensive.

Memory costs are behind the increase

Microsoft has blamed a sharp rise in console storage and memory costs, rather than a refresh of the hardware itself. In its Xbox Wire announcement, the company said it had tried to avoid another increase after raising US prices in October 2025.

“Last October, we increased XBOX console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles.”

The wider shortage is being driven by demand for DRAM and NAND memory from AI data centres, which are estimated to be consuming around 70% of global memory output. Chip prices have risen by 80% to 95% quarter on quarter, creating a problem not only for console makers but also for PC manufacturers. Dell, Lenovo and HP have signalled potential price increases of 15% to 20% in the second half of 2026.

Microsoft’s position is particularly awkward because it is a major player in the AI boom contributing to the wider demand for memory and storage. But consoles are especially exposed because they are traditionally sold at slim margins or below cost, with platform holders expecting to earn money through software, subscriptions and services instead.

“Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”

A third increase since May 2025

This is Microsoft’s third worldwide Xbox pricing move since May 2025, and its steepest yet. The company first increased prices across most regions in May 2025, then raised US pricing again in October. The August 2026 changes apply globally.

The contrast with the start of this console generation is stark. The Xbox Series S 512GB launched in 2020 at $299, while the 1TB Series X launched at $499. In the UK, the Series X launched at £499.99 and the Series S at £299.99. The disc-based Series X is therefore now £150 above its UK launch price.

US buyers face a similar shift: the 1TB Series X with a disc drive now costs $799.99. That is the same price the now-discontinued 2TB model carried before this announcement, meaning buyers in that market are paying the former 2TB price for half the storage.

Xbox CEO Asha Sharma had signalled the scale of the issue before the formal announcement. Sharma, who took over as Microsoft Gaming CEO in February after Phil Spencer retired, said the price paid for console storage components had already exceeded twice the level of the previous autumn. Microsoft says those costs have since doubled again and could rise further.

Console price rises are becoming an industry pattern

Microsoft is not alone in raising prices. Sony introduced global PlayStation 5 price increases from 2 April 2026, taking the PS5 Digital Edition to $599.99, the disc model to $649.99 and the PS5 Pro to $899.99. Sony cited “continued pressures in the global economic landscape”.

Nintendo is also set to increase the Switch 2 price from $449.99 to $499.99 in the US, Canada and Europe on 1 September, after raising the Japanese price in May. Nintendo likewise attributes its move to the global memory shortage.

Together, those decisions have made this the first console generation to become more expensive as it ages. That overturns the familiar pattern in which manufacturing improvements and ageing hardware eventually lead to price cuts.

What buyers can do next

Microsoft says it is introducing Buy Now, Pay Later and interest-free finance programmes, while promoting certified refurbished and second-hand consoles as lower-cost alternatives. Those measures may soften the immediate hit, but they do not change the higher list prices now in force.

There was evidence of buyers acting before the increase: Xbox Series X|S sales in the US rose 86% in June, consistent with a pre-hike rush. Sony experienced a similar burst of demand before its PlayStation increases, although PS5 sales then fell 58% in May.

For anyone buying in the UK today, the practical takeaway is simple: the Series X and Series S cost more than they did at launch, and the usual expectation of a late-generation discount no longer looks safe. Microsoft has warned that component prices may double again by autumn 2027, so this may not be the last pricing pressure buyers see.