Xbox Series S, The “Cheap” Option, Now Costs As Much As Series X Did Six Years Ago
When the Xbox Series S launched alongside the Xbox Series X and PS5, it offered a compelling alternative: play the same games as on other platforms, albeit with slightly reduced performance and visual fidelity, at a much lower price. At $300, it seemed like a smart purchase, saving users $100 compared to the cheapest PS5 and $200 compared to the more premium PS5 and Xbox Series X models. As the Series S approaches its sixth anniversary, it was expected—like any other console—to become more affordable over time, following the usual trend. But in 2026, that expectation has been upended.
Beginning August 1, the Xbox Series S will cost as much as the Xbox Series X did at its launch in November 2020: $500. This means that after nearly six years, the price has increased by 67%. While we've already reported on this Xbox price increase, the realization that the Series S is now priced at the same level as the Series X's original launch price is one of the most surprising aspects of this situation. (Currently, you can still find a Series S for $380 on Amazon, which is more than what it originally cost but still significantly lower than $500.)
This price shift is the opposite of what one would expect based on historical trends. Typically, as technology becomes more widespread and production costs decrease, the price of hardware drops. However, the Series S, like many modern devices that require RAM and storage, is facing rising costs due to a global chip shortage—a crisis that Microsoft has played a significant role in exacerbating, given its position as one of the largest producers of AI products.
There has been much discussion about how gaming consoles might be pricing themselves out of relevance in an evolving market. The way games are played, developed, and distributed is changing rapidly, with increasing emphasis on long-term engagement and new business models. At launch, the Series S was a more attractive option for budget-conscious gamers, with Microsoft proudly branding it as “the smallest, most affordable next-generation console.”
While this label might still technically be accurate at $500—especially as other consoles have also seen price hikes—the practical reality is that, for the average person looking for an affordable way to play games like GTA 6 this fall—or even in 2027 or beyond—the Series S is no longer a budget-friendly option. The once-vaunted “cheap” console is now nearly as expensive as its more powerful sibling, leaving many gamers in a difficult spot.
