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It is part of a previously announced plan to collect used systems and resell them at lower prices as new Xbox hardware becomes more expensive and difficult to produce. The request is optional and does not mean Microsoft is recalling the consoles.
How the offer may be connected to Xbox price increases
Microsoft announced in June that Xbox console prices would rise worldwide from August 1, 2026. The company raised prices on 512GB models by $100 and 1TB models by $150, while discontinuing its 2TB model. Microsoft attributed the increase to storage and memory prices, which it said had risen by more than 2.5 times. It also warned that those component costs could double again by autumn 2027.
Alongside the price increase, Microsoft announced financing options, refurbished hardware and a program for used consoles.
“We are working with retail partners on new programs to provide previously played consoles at lower prices,” Microsoft said. Unlike many other consumer electronics products, consoles are commonly sold at or below their manufacturing cost, with companies earning money later through games and subscriptions. “Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit. Those consoles will then be made available at lower prices for players.”