Microsoft confirms increased Xbox prices in the UK and Europe

Xbox consoles in the UK and Europe will increase from between £130/€150 and £170/€200 following worldwide price hikes announced in late June.

The new UK and Europe prices are as follows:

UK

• Xbox Series S 512GB goes from £299.99 to £429.99
• Xbox Series S 1TB goes from £349.99 to £519.99
• Xbox Series X 1TB Digital goes from £449.99 to £619.99
• Xbox Series X 1TB Disc goes from £499.99 to £669.99

Europe

• Xbox Series S 512GB goes from €349.99 to €499.99
• Xbox Series S 1TB goes from €399.99 to €599.99
• Xbox Series X 1TB Digital goes from €549.99 to €749.99
• Xbox Series X 1TB goes from €599.99 to €799.99

Microsoft cited higher storage and memory costs as the reason for continued price rises. It has also discontinued the 2TB model.

“Console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” the company said in a blog post.

“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. 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.”

In the weeks following the June price rise announcement, Xbox underwent significant restructuring. This included layoffs impacting 3,200 employees and the divestment of five studios.

Microsoft also reported a $1.7 billion decline in Xbox revenue in 2026, with hardware sales dropping 29% year-on-year due to lower console sales.

In response, Xbox CEO Asha Sharma said the firm will “not live on past successes or be trapped by past failures.”

“We will learn from both and put our energy into creating what players will love for decades.”

Sharma also noted that although Xbox gained over 200 new players in FY26, the “business did not grow with our audience.”

“We need to close that gap by investing in what players value. That will take time, but we expect to return to growth by the end of 2027.”

Microsoft CEO Satya Nadella stated that Xbox leadership was “making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth.”

“We have the best IP in the industry, and talented studios around the world, and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027.”