Microsoft Corp last week announced it would raise recommended retailer pricing for its Xbox consoles and controllers around the world. Its Xbox Series S now starts at US$379.99 in the US — up US$80 from the US$299.99 price tag that debuted in 2020, while the more powerful Xbox Series X would be US$599.99, a US$100 jump from its previous US$499.99 listing.
“We understand that these changes are challenging,” Microsoft wrote in an Xbox support update on Thursday. The tech giant did not point to tariffs specifically, but cited wider “market conditions and the rising cost of development.”
Beyond the US, Microsoft also laid out Xbox price adjustments for Europe, the UK and Australia. The company said all other countries would also receive updates locally.
Photo: AFP
Some Xbox accessories, including wireless controllers, are impacted too, as well as headsets in the US and Canada, and further down the road, Microsoft said it also expects to make some of its new, first-party games more expensive this holiday season, with a price tag of US$79.99.
The price hikes arrive during a turbulent and uncertain time for the gaming industry, largely due to new tariffs implemented by US President Donald Trump and retaliation from targeted countries, notably China.
Xbox players are not the first gamers to feel the impacts amid these ongoing trade disputes. Last month, Sony Group Corp raised its recommended retail pricing for PlayStation 5 consoles in select markets — including countries in Europe, the Middle East and Africa, as well as Australia and New Zealand.
Preorders for Nintendo Co’s highly anticipated Switch 2 were also delayed last month as retailers assessed the potential impact of tariffs. Nintendo later confirmed that some Switch 2 accessories would see price adjustments — but maintained that its previously-announced baseline price for the console, US$449.99, would remain the same.
While companies across industries have already shared weaker or cloudy outlooks amid tariff uncertainty, larger impacts on their bottom lines might not be seen until further down the road.
The Xbox price hikes were announced just one day after Microsoft posted a strong earnings report for the January to March quarter, with US$70.07 billion in revenue and US$25.8 billion in net income.
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