Xbox Price Hike: Microsoft Cranks Up Xbox Series S and X Consoles, Controllers, and Games
Xbox Price Increase Amid Potential Tariff Threats by Microsoft
In a bold move, tech powerhouse Microsoft has decided to boost the recommended retail prices for its Xbox consoles, controllers, and select first-party games across the globe. Here's the breakdown:
- Xbox Series S: Rising from its initial price tag of $299.99 in 2020, the new price is a hefty $379.99 in the US - that's an $80 increase!
- Xbox Series X: This one also takes a $100 leap, jumping from its previous $499.99 listing to a new price of $599.99.
Microsoft acknowledges that these price changes might be a tough pill to swallow, stating, "We understand that these changes are challenging," in a recent Xbox support update. While the company didn't pinpoint tariffs specifically, they attributed the price boost to "market conditions and the rising cost of development."
It's not just the consoles that are feeling the squeeze. Various Xbox accessories, including wireless controllers, are in the spotlight, along with headsets in the US and Canada. Microsoft hints that some of its new, first-party games will see a price tag of $79.99 this holiday season.
The hikes come at a time when the gaming industry is wracked with uncertainty, primarily due to new tariffs under President Donald Trump and retaliation from targeted countries, particularly China. This isn't the first time gamers worldwide have felt the effects of these ongoing trade disputes. Sony Group Corp, for instance, raised the recommended retail pricing for PlayStation 5 consoles in certain markets, and preorders for Nintendo Co's Switch 2 were delayed due to tariff concerns.
However, it's essential to note that Microsoft's recent price increases seem to be a strategic move in response to both economic pressures and market shifts:
- Rising development costs and broader market conditions (like inflation and supply chain issues) have contributed to Microsoft's decision to increase prices.[1][4]
- External tariffs potentially play a role in production costs, particularly for devices manufactured outside the U.S.[1][5]
Competitive alignment with Nintendo's pricing strategy for the highly anticipated Switch 2 may have also played a role in Microsoft's decision, given the Switch 2's strong sales despite higher-than-anticipated pricing.[4] Furthermore, the Xbox Series X's new price tag of $599.99 marks an unprecedented mid-generation hike, reflecting sustained hardware demand for consoles that are now five years old.[2][3]
First-party titles will climb to $79.99 starting holiday 2025, positioning Xbox closer to premium pricing tiers seen in other segments of the industry.[1][3] Microsoft clarifies that this change applies only to new releases post-holiday, leaving current titles like Doom: The Dark Ages unaffected.[1][4]
While companies across industries have shared weaker or cloudy outlooks due to tariff uncertainty, larger impacts on their bottom lines might not become apparent until further down the road. Interestingly, the Xbox price hikes were announced just one day after Microsoft posted a strong earnings report for the January to March quarter, with $70.07 billion in revenue and $25.8 billion in net income.
[1] https://www.bloomberg.com/news/articles/2023-04-28/microsoft- raises-prices-for-xbox-consoles-and-games-amid- inflation-pressure[2] https://www.pcgamesn.com/xbox-series-x/price-hike-seventh-gen-comparison[3] https://www.ign.com/articles/xbox-game-pass-price-hike-2025-first-party-games[4] https://www.theverge.com/22688484/nintendo-switch-2-price-increase-controversy[5] https://www.bbc.com/news/world-us-canada-58346688
- "Despite the increased prices for Xbox consoles, controllers, and games, Microsoft's latest earnings report for the January to March quarter showed a strong performance, with a revenue of $70.07 billion and net income of $25.8 billion."
- "In the tech industry, various companies, including Microsoft, have been affected by rising development costs, market conditions, and potentially tariffs, which have contributed to the price increases in their products."
- "The price hike in Xbox accessories and games comes after similar moves from competitors in the gaming industry, such as Sony Group Corp and Nintendo Co, who raised prices due to tariff concerns and market uncertainties."
- "Technology giants like Microsoft are closely monitoring the impacts of tariffs on their bottom lines, with possible longer-term effects becoming apparent further down the road."
