Microsoft Drops the Price Even Further for the Xbox One

Just one day after announcing the Xbox One S, Microsoft once again dropped the price on the current model.
Xbox One

Two weeks ago, Microsoft dropped the price of the Xbox One from $349 to $299. Now it's announced yet another drop, which probably makes it seem like an even better time to buy. But, you might want to hold off. Buying a current console on the cheap might seem like a good idea, but with newer versions confirmed and release dates announced, that's not necessarily the case.

Xbox One Is Now $279 Until October 1

That's right, the price has dropped another $20 for the 500GB basic bundles, to $279. The 1TB models are also being discounted to $299. This latest price will run through October 1, suggesting we might see a few dips here and there, but this is likely to be the main price until then.

A Brand New Xbox Was Just Announced

The original price drop was right before E3, helping to fuel rumors that a new, slimmer version would be announced. Now it has, and you can already preorder a 2TB version of the new Xbox One S for $399, which will be released August 31. A 500GB version for $299 and a 1TB version are also available for preorder for $349, but are due for release in December.

Even Lower Prices on the Horizon?

We speculated a couple of weeks ago that with the slimmer version announcement, prices on the original could continue to drop in the coming months. This latest decrease suggests clearing existing stock is a priority, but it's only good until October 1. This means there's still the potential to see some other price drops to clear out any lingering current models come Black Friday and Cyber Monday.

During last year's Black Friday sales, we saw 500GB consoles offered with various gift cards, including one bundled with a $60 gift card for $299. Factoring in the credit, that deal yielded a savings of $60.

SEE ALSO: Amazon Just Made it So Much Easier to Get a Great Discount on Video Game Preorders

Considering last year's plethora of gift card combos, and the latest price cut, we could see some bundles offered at an equivalent price of $200 or less during Black Friday 2016.

We've Still Seen Better Deals in the Last Few Months

Even without the expected slashes of the holiday season, we've seen better Xbox One deals than the new $279 price point. Just a few weeks ago, you could snag a refurb 500GB console for $190, and in March we saw that refurb bundled with three games for $214.

Not a fan of refurbs? Also in March we found a new 500GB Gears of War bundle for $259, a deal that has continued to show up during the last few months. Then in April we saw a new 1TB Gears of War bundle for $289. And within the last few weeks, there was a new 500GB console bundled with a game and a $50 gift card for $297, which is a stronger net value.

In many ways, this latest price drop from Microsoft could yield even bigger Xbox savings than what we're seeing now. It's entirely possible shoppers can expect some hard-to-beat offers in the coming months.

Readers, will you purchase one of these newly discounted current models? Or will you preorder the new Xbox One S? Share your thoughts in the comments below!

Julie Ramhold
Senior Staff Writer/Consumer Analyst

Julie's work has been featured on CNBC, GoBankingRates, Kiplinger, Marketwatch, Money, The New York Times, Real Simple, US News, WaPo, WSJ, Yahoo!, and more. She's extolled the virtues of DealNews in interviews with Cheddar TV, GMA, various podcasts, and affiliates across the United States, plus one in Canada.
DealNews may be compensated by companies mentioned in this article. Please note that, although prices sometimes fluctuate or expire unexpectedly, all products and deals mentioned in this feature were available at the lowest total price we could find at the time of publication (unless otherwise specified).


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I have a xbox one.... never had a single issue with it. You must have gotten a dud.
People if you do buy a console buy a PS4. I made the mistake and bought a Xbox one first, month later I went out and bought a PS4 cause the xbox one always had something wrong with it. I'd wait for the new PS4 now.
You really shouldn't buy a console now. Wait to see what Sony's plans are and then consider the PS4 Neo, but more likely, wait for next year to see the price and true power of Project Scorpio. Unless you need a 4K UHD Blu-ray player, then the Xbox One S is a good buy. If you need a console this year, still wait for the PS4 Neo announcement and see what happens to the PS4's base price and especially those prepackaged unsold bundles from the last year.
still not worth it, and they cannibalized it with announcing the new model next holiday season