As Xbox gets pricier, Microsoft launches Buy Now, Pay Later scheme for consoles

Earlier today, Microsoft raised the price of its Xbox consoles by up to $150 in the US. Following the price hike, the asking price for the Xbox Series X 2TB edition has climbed all the way up to $800. The 1TB model now costs $650, while the Xbox Series S with 512 GB storage will now cost $400 in the US market. 

What’s the game plan?

To retain gaming enthusiasts, Microsoft has introduced a new installment-based payment scheme for its consoles that is now live through its official storefronts. The Buy Now Pay Later system is currently available for the Xbox Series S and the Xbox Series X consoles — for both new and refurbished units. 

According to Microsoft’s website, the Buy Now, Pay Later system works in collaboration with PayPal and allows you to pay the full cost of a device in four installments (paid bi-weekly) with zero interest, or you can opt for monthly installments and pay them across installments.

If you opt to pay monthly for an Xbox console, you can break the installments across 24 months. There are no late fees or sign-up charges involved. “Flexible payment options help you pay how you want, at Microsoft Store,” says the company on its online storefront.

The caveat, and alternative

But in order to avail the buy now, pay later benefit on Microsoft Store, which is essentially an extension of the PayPal Pay Later system, your purchase must first be approved before you can decide the duration over which you want to pay the full cost of the Xbox console. 

In case your purchase is not approved by PayPal or you don’t have a PayPal account, you can head over to Amazon and purchase an eligible Xbox console via a financing scheme with zero interest, spread across 12 months. 

Microsoft won’t be the only player reeling under the stress of rising memory and storage chip prices, ultimately forcing it to raise the hardware prices. Earlier today, Apple also raised the sticker price of Mac and iPad hardware significantly. Elsewhere, the cost of PCs and laptops has gone up, and even Valve had to price its Steam machine at over $1,000 in the U.S. market.