Microsoft Announces Price Hike for Xbox Consoles Amid Rising Costs and Trade Tensions
Microsoft has unveiled a substantial price increase for its Xbox consoles worldwide, attributing the rise to “market conditions” and escalating development expenses.
The price hikes come at a time when the gaming industry faces significant uncertainty due to US tariffs on electronics imported from China. The price of the Xbox Series S will increase by £50 in the UK, reaching £299.99. In the US, the console will see a 27% increase, rising from $299.99 to $379.99.
Meanwhile, the premium Xbox Series X Galaxy Black will rise by 22%, from $599.99 to $729.99. European markets will also face a price surge, with the Series S going up by €80 to €349.99. In Australia, the console will now retail at $549 AUD.
Microsoft issued a statement saying, “These changes are difficult, but have been made after careful consideration of market conditions and the rising costs of development.”
While the company didn’t directly link the price hikes to tariffs, experts in the industry attribute the increases to ongoing trade tensions and significant US import duties—sometimes as high as 145% on Chinese-made products.
In addition to hardware price adjustments, Microsoft plans to raise the cost of certain first-party games to $79.99, aligning with the price of Nintendo’s upcoming Mario Kart World. Unlike Nintendo, Microsoft will maintain this price for both physical and digital game versions.
Gaming analysts have cautioned that these price hikes could further dampen Microsoft’s console sales, which are already trailing behind competitors in some markets.
Industry insiders also predict these increases could signal a broader trend in the gaming sector, where rising production costs and stagnant user growth are becoming more pronounced.
In a similar move, Sony raised prices for PlayStation 5 consoles across several regions. Meanwhile, Nintendo has postponed the pre-order launch of the Switch 2 due to manufacturing challenges linked to trade policy changes.
