Gamers looking to purchase a new Xbox console should prepare for a price jump starting August 1, 2026. Microsoft has announced a worldwide hike in hardware costs, driven largely by the surging prices of memory and storage components. With these parts now costing more than 2.5 times what they did previously—and potential for further increases by 2027—the company is raising the price of 512GB models by $100 and 1TB versions by $150. Additionally, the 2TB model is being phased out entirely, as the company struggles to maintain margins on hardware that is already historically thin.

While Microsoft has yet to release specific figures for the UAE market, local consumers should anticipate a proportional increase based on these global adjustments. For those planning to upgrade before major titles like Grand Theft Auto VI hit the shelves in November, purchasing before the August deadline could save significant money. To help offset these rising costs, Microsoft is rolling out more flexible payment options, including "Buy Now, Pay Later" plans and 0% financing programs. Shoppers can also look into the company's trade-in schemes or explore certified refurbished models as more budget-friendly alternatives to buying brand-new units.