Microsoft’s Xbox division is raising the prices of its gaming consoles, accessories, and first-party games across major markets including the United States, Europe, the UK, and Australia. The decision follows similar pricing strategies from competitors and reflects the growing impact of tariffs on manufacturing and supply chain costs.
The Xbox Series X, the brand’s most powerful console, will now be priced at approximately US$600 in the US, representing a US$100 increase. This adjustment comes shortly after Sony raised the prices of its PlayStation 5 consoles, with the PS5 Pro model now retailing at around US$700. The rising costs across the industry are largely attributed to ongoing US tariffs on imported goods from key manufacturing countries such as China, Japan, and Vietnam. These trade policies, initially introduced during the Trump administration, have increased production expenses for companies that rely heavily on overseas assembly.
In addition to hardware, Xbox will also raise the price of certain first-party titles to about US$80. This move mirrors Nintendo’s pricing for its flagship title, Mario Kart World, and may signal a broader shift toward higher game prices as development costs continue to escalate. The increase in game pricing could set a new benchmark for the industry, especially as players expect more advanced graphics, immersive experiences, and frequent content updates.
Gaming consoles remain a primary growth driver for the video game sector in 2025, with industry attention focused on the upcoming release of the Nintendo Switch 2. Nintendo recently reopened pre-orders for the new device in the US, after a temporary delay caused by uncertainty surrounding tariffs. Scheduled for launch in June, the Switch 2 is expected to boost hardware sales significantly in the second half of the year.
While the new pricing structures are meant to offset higher production costs, analysts caution that they could have adverse effects on consumer demand. With inflation rising and concerns about a potential economic downturn, some consumers may begin to cut back on non-essential purchases like gaming hardware and software. The increased financial pressure on households could slow the industry’s momentum, particularly in price-sensitive markets.
Despite the challenges, Xbox and other major players are pushing ahead with their pricing adjustments, aiming to sustain profitability amid a shifting global economic and trade environment.
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