Microsoft has announced that it is raising the recommended retail prices for its Xbox consoles and some controllers globally, citing “market conditions” and the rising cost of development. The price hikes will affect consumers purchasing Xbox consoles and certain first-party games during the holiday season, as they face the impact of President Donald Trump’s tariffs on imports.
The company acknowledged the challenges posed by the price increase but explained that the decision was made after careful consideration of the current market conditions and the rising costs associated with game development. “We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” Microsoft said in a statement on its support page. The company emphasized its continued commitment to offering players more ways to access games and ensuring value for Xbox users.
The price increase will not affect existing video game titles. The entry-level Xbox Series S with 512 GB of storage will now be priced at $379.99 in the U.S., up from $299.99. The flagship Xbox Series X will increase to $599.99, from $499.99. Both consoles were originally launched in 2020. Additionally, the price of the special edition Xbox Wireless Controller will rise to $79.99, up from $69.99.
As for new games, Microsoft indicated that some upcoming titles will carry a recommended price of $79.99 during the holiday period. This is an increase from last year, when major Microsoft titles were priced at $70. The company also pointed out that the cost of producing popular video games has significantly risen, which has become a particular concern following its $75.4 billion acquisition of Activision Blizzard in 2023. Activision Blizzard’s popular title, Call of Duty: Black Ops Cold War, was reported to have cost upwards of $700 million to develop.
In the same week, Microsoft also reported that sales of Call of Duty and Minecraft increased during its fiscal third quarter. The price increases from Microsoft follow similar moves by Nintendo and Sony, who also raised prices on some consoles and games recently.
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