Microsoft Announces Xbox Series X and S Price Hikes and Discontinues 2TB Model

Microsoft has implemented price increases for its Xbox Series X and Series S consoles across several international markets, while simultaneously discontinuing the 2TB version of the Xbox Series X. The adjustment affects pricing in multiple regions, though the company has maintained current pricing structures in the United States, Japan, and Chile.

Regional Pricing Adjustments

The price changes vary by market and specific hardware model. In many European and international territories, the Xbox Series X is seeing a price hike to approximately €549.99, while the Xbox Series S is being adjusted to €349.99. These figures represent a shift in Microsoft’s regional hardware strategy, moving away from the launch-era pricing that remained stable for several years.

According to data reported by IGN, the company is citing shifts in global economic conditions and currency fluctuations as primary drivers for the hardware cost adjustments. Microsoft has not issued a universal global price increase, opting instead to target specific regions where local currency devaluation against the U.S. dollar has impacted profit margins on hardware sales.

Discontinuation of High-Capacity Models

Alongside the price adjustments, Microsoft confirmed it is phasing out the 2TB version of the Xbox Series X. The model, which offered double the internal storage capacity of the standard Series X, will no longer be manufactured.

Retailers have been instructed to clear existing inventory of the 2TB units. This move simplifies the company’s hardware lineup, leaving the standard 1TB Xbox Series X and the 512GB Xbox Series S as the primary pillars of the current generation offering. The company has not provided a direct successor for the 2TB model, though it continues to market proprietary expandable storage cards manufactured in partnership with Seagate and Western Digital.

Market Comparison and Strategy

The decision to exempt the United States, Japan, and Chile from these increases highlights a divergence in Microsoft’s regional pricing models. In the United States, the Xbox Series X remains at its original $499.99 price point, while the Series S continues at $299.99.

This strategy contrasts with competitors like Sony, which previously adjusted the price of the PlayStation 5 in various international markets, including parts of Europe, the Middle East, and Asia, in 2022. By maintaining current prices in the U.S. and Japan, Microsoft appears to be prioritizing market share in its most competitive territories while attempting to stabilize revenue in regions where currency volatility has made hardware production and distribution significantly more expensive.

Microsoft has not announced any further changes to its console hardware roadmap for the remainder of the fiscal year.