Microsoft Raises Xbox Prices Globally Amid Tariff Pressures and Rising Costs
- tech360.tv
- May 5, 2025
- 2 min read
Microsoft has increased the prices of its Xbox consoles and accessories worldwide, citing market conditions and rising development costs.
The Xbox Series S now starts at USD 379.99, up from its original USD 299.99 launch price in 2020. The more powerful Xbox Series X will retail for USD 599.99, a USD 100 increase from its previous price.
The price hikes apply not only in the United States but also across Europe, the United Kingdom, Australia, and other global markets. Microsoft confirmed that local pricing updates would be rolled out in all other countries.
Accessories such as wireless controllers and headsets in the U.S. and Canada are also affected. Additionally, Microsoft plans to raise prices on some of its new first-party games to USD 79.99 during the upcoming holiday season.
The adjustments come amid ongoing global trade tensions and new tariffs introduced by U.S. President Donald Trump. Economists have warned that these tariffs could lead to higher prices on electronics and other consumer goods that rely on international supply chains.
Microsoft did not directly attribute the price increases to tariffs but acknowledged broader economic pressures in a statement posted on its Xbox support page.
Other gaming companies are also adjusting to the changing economic landscape. Sony recently raised PlayStation 5 prices in select markets, including Europe, the Middle East, Africa, Australia, and New Zealand, citing inflation and currency fluctuations.
Nintendo delayed preorders for its upcoming Switch 2 console in April to assess tariff impacts. While the base price of the Switch 2 remains at USD 449.99, some accessories will see price increases.
The original Nintendo Switch launched at USD 299, making the new model significantly more expensive. Analysts suggest that new features and import taxes are both contributing to the higher cost.
Despite the price hikes, Microsoft reported strong financial results just one day before the announcement. For the January–March quarter, the company posted USD 70.07 billion in revenue and USD 25.8 billion in net income.
Revenue from Microsoft’s personal computing division, which includes Xbox services and laptops, rose 6% during the quarter. However, these figures were recorded before the latest tariffs took effect.
Microsoft raised Xbox Series S and X prices by USD 80 and USD 100, respectively
Price increases apply globally, including Europe, the U.K., and Australia
Accessories and some first-party games will also cost more
Source: AP NEWS
