Microsoft’s Xbox division has announced price hikes across its range of consoles, controllers, games and accessories, citing the impact of global tariffs on manufacturing and supply chains.
In a blog post published on Thursday, the company confirmed that the price increases will take effect in key markets including the United States, Europe, Australia and the United Kingdom.
The flagship Xbox Series X console will see its retail price rise by $100 in the U.S., bringing it to approximately $600. The adjustment follows a similar move by Sony, which recently raised prices for its PlayStation 5 console in several regions. Sony’s PlayStation 5 Pro is now priced at around $700 in the U.S.
The changes come as console makers grapple with rising production costs, largely driven by tariffs introduced under the Trump administration targeting imports from major manufacturing countries such as China, Japan and Vietnam.
Industry analysts have cautioned that these tariffs could dampen growth in the video game sector, particularly as consumers face economic pressures from inflation and the risk of a global recession.
Gaming consoles are expected to be the primary driver of industry expansion this year, with Nintendo preparing to launch its highly anticipated Switch 2 console in June. Pre-orders for the Switch 2 resumed late last month after being delayed in the U.S. due to uncertainties over tariff policies.
In addition to hardware, Xbox will also raise the price of certain first-party titles, setting a new price point of around $80—mirroring Nintendo’s pricing for its upcoming release,Mario Kart World. The shift reflects the rising cost of game development and may signal a broader trend towards higher game prices across the industry.
While the increases may help console makers offset higher production expenses, some experts warn they could deter consumers already facing a squeeze on discretionary spending.
(With inputs from Reuters)
