Xbox Series S and X Price Hike Strategy Signals Repeat of Xbox One Launch Disaster
Xbox has been making waves recently with its announced layoffs as a part of hitting the reset button. When Asha Sharma took over the reins of Microsoft’s Gaming division from Phil Spencer, she faced a lot of criticism based on her past experience in the company, which was totally unrelated to gaming. However, she proved herself as a worthy Xbox CEO, by bringing in a cheaper Xbox Game Pass and Xbox exclusives like Gears of War: E-Day. But what looked like a new vision for Xbox changed into a catastrophe, once the reality of the doomed Xbox business came to the forefront. Xbox has been there for years now, but it still hasn’t been able to compete with PS5 in any way. Have you ever wondered why Xbox lost the race? Right now, after the incoming layoffs in the company, what has come as a surprise for the fans is an Xbox Series S and X price increase. Just few days back Xbox CEO, Asha Sharma said “Gaming is becoming unaffordable”, and now this recent Xbox console price increase contradicts the philosophy of the new Xbox CEO.
Xbox is increasing the price of its Xbox Series X|S consoles starting in August
— Dexerto (@Dexerto) June 25, 2026
Xbox Series S 512GB: $399 → $499
Xbox Series S 1TB: $449 → $599
Xbox Series X 1TB: $649 → $800
Xbox Series X 1TB Digital: $599 → $750 pic.twitter.com/sLT0BL028K
Xbox New Prices for Series S and X Consoles
The increases hit $100 for 512GB models and $150 for 1TB versions, and now the new price for Xbox Series S 512GB is $499.99, Series S 1TB $ 599, and $800.99 for the top Series X. Microsoft blames a components crisis, with storage and memory costs up over 2.5 times and possibly doubling again by fall 2027, noting consoles often sell at a loss unlike phones or PCs. To ease the pain, they’re offering interest-free payments, refurbished units up to $100 off, and trade-in options, while promoting Game Pass and the budget Series S for upcoming blockbusters like GTA 6. Many gamers call the new prices unaffordable, especially as Xbox now costs more than comparable PlayStations. But is it enough for Xbox users?
Xbox Series S and X are Now More Expensive than PlayStation Consoles- Repetition of Xbox One Mistake?
Xbox Series X and S are in some way more expensive than the PlayStation consoles now, and this looks like a repetition of Microsoft’s Xbox One launch mistake. PS5 Digital Edition is $599.99 after the recent price increase and Xbox Series S is also $599 after the price increase. However, PS5 as a console is much more powerful in specs in comparison to the Xbox Series S and that’s the reason Xbox Series S was launched as an affordable console in the market. With RAM prices going high, prices of consoles are bound to increase, but Xbox needs to consider the market pricing set by its closest competitor for their consoles while increasing the prices of its products.
Same mistake was committed by Microsoft while launching Xbox One console in the market. Xbox One console was launched as a digital console, bundled with Kinect, and that raised its prices to $500. In comparison to Xbox One, PlayStation 4 was launched at a lower price of $400 in the market. This is when PlayStation left Xbox behind, as Xbox One was not only pricier, but also a digital only console for a time, when consoles with disc drive were a trend. Later Xbox One was launched in the market again with a disc drive and also without a Kinect Bundle, but by then it had already lost the race.
Now, with GTA 6 releasing in November, PS5 and Xbox Series X/S consoles will experience a surge in demand, but will the users purchase an Xbox console or a PlayStation console to play GTA 6? PS5 and PS5 Pro are already being marketed as the two best consoles to play GTA 6, as parts of GTA 6 trailer 2 were made to run on Base PS5 by Rockstar Games. And on top of that with Xbox Series S price competing with PS5 Digital Edition console, most gamers would stick with PS5 purchase for playing GTA 6.
Xbox has made many mistakes in the past, and this could just be another one for them. Right from denying GTA 3 as a console exclusive to setting the wrong price for a new console, Xbox has committed serious mistakes in the past. Now, with Sony going back to PS5 exclusives, what would you purchase, a PS5 or an Xbox to play games like GTA 6?
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GTA 6 Download, Pre Order Bonus, Price, and Ultimate Edition