This is the third time that Microsoft has increased its Xbox consoles’ prices in the period following 2025. This one however, seems quite noticeable. The Xbox Series X 1 TB disc edition now retails at $800. The Series S 512 GB, previously considered the low-cost gateway into the world of Xbox, has surpassed the $500 mark. The 2 TB variant has been withdrawn. These will be your prices starting August 1. To give some context: today’s most affordable Xbox is precisely as expensive as its predecessor, the Series X, was upon launch six years ago.
Also read: Riot Games’ Vanguard anti-cheat will no longer run at startup: Here’s why that matters
The increase itself is already annoying enough. But coming only two months after Microsoft made a spectacle out of decreasing the prices of Game Pass, it’s just infuriating. In April 2026, the newly appointed CEO of Xbox, Asha Sharma, rolled back the increase in subscriptions announced back in October 2025, bringing the price of Ultimate back down to $22.99 and saying in a statement that it had grown “too costly” and caused the loss of millions of subscribers. At that point it seemed like a step in the right direction.
Because here is what that subscription rollback quietly carried with it: future Call of Duty titles no longer arrive on Game Pass on day one. They will land roughly a year after launch instead. The headline price went down; the headline feature went with it.
The pattern, put simply, goes like this: Microsoft increased subscription costs, saw their subscriptions fall by millions, reduced subscription costs after removing a key feature, and then increased hardware prices by $150. This is not a good value proposition. It’s a business squeezing customers’ patience on both ends.
Also read: NanoStack explained: Did IBM really build a 0.7nm chip?
The situation for Indian gamers, unfortunately, is worse. In India, Game Pass Ultimate cost was increased from INR 649 monthly fee to INR 1,389 in October 2025. This means that there was an increase of more than 100% in just one leap. While the April 2026 cut helped in a way, the price in India is still significantly higher than the price charged just a year before. And yet, Xbox hardware is quite expensive in relation to local incomes. Console gaming in India has traditionally faced the challenge of competing with free-to-play games for mobile and PCs. And yet the Series S was the only product which could make at least somewhat believable affordability case. With its price now at $500 and more, this argument goes right out the window.
The official reason for the increased hardware prices offered by Microsoft is the 2.5 times increase in storage and memory costs compared to the previous price hike due to inflation until 2027. The former is probably true. However, it does not answer the question of why all the cost must fall to customers’ shoulders while the company rolls back one of the benefits to its subscribers.
Game Pass is a valuable service when viewed from the right angle. If one plays Xbox games regularly, then the games such as Forza Horizon 6, and future Gears and Fable will make the purchase decision on their own. However, the day-one access to the Call of Duty series is the reason most users choose to stay at Game Pass. Removing this feature along with the price increase turns the question of necessity into a very hard one.
Buy Now, Pay Later is an additional measure announced along with the prices increase by Microsoft. It says more than enough on the intentions of the company in regard to its subscribers.
Also read: After Apple, Microsoft raises Xbox prices: New console rates and effective date