Microsoft has announced that starting August 1st (US time), it will increase the global prices of Xbox consoles and discontinue the 2TB model.

Under this new pricing, the Xbox Series S 512GB model will see a price increase of $100 (approx. 154,900 KRW), while the 1TB model will increase by $150 (approx. 232,350 KRW). This adjusts the 512GB Xbox Series S to $499.99 (approx. 774,500 KRW) and the 1TB model to $599.99 (approx. 929,400 KRW).

The disc-less 1TB Xbox Series X model will rise to $749.99 (approx. 1,161,700 KRW), and the 1TB model with a disc drive will increase to $799.99 (approx. 1,239,200 KRW). The 2TB Xbox Series X model will be discontinued.

The primary reason for the price hike is the sharp rise in the cost of memory and storage components. Microsoft stated on its official blog, "Unfortunately, console storage and memory costs have surged more than 2.5 times, and we expect them to nearly double again by autumn 2027." They added, "While the entire electronics industry is struggling, it is particularly harsh for consoles because, unlike other electronics, consoles are usually sold below manufacturing cost."

Microsoft previously raised Xbox console prices in the US by $20 to $70 in October last year. At the time, the company had been discussing alternatives with suppliers to avoid further price increases, but it appears that the sustained pressure on production costs has made it difficult to maintain hardware prices for a longer period.

Meanwhile, Microsoft announced that it is introducing purchase programs to reduce the burden on consumers. This includes a 'buy now, pay later' option through the Microsoft Store and interest-free installment plans of up to 12 months through partners such as Amazon. Additionally, the company will launch a program to buy back used consoles for resale at lower prices and offer certified refurbished products at up to $100 off the recommended retail price.