Microsoft has announced a global price hike on its Xbox consoles, attributing the move to “market conditions” and the rising costs of game development. The decision, revealed on Thursday, follows a similar announcement by Sony regarding its PlayStation 5 models in several regions earlier this month.
The price adjustments affect both the hardware and certain upcoming first-party game titles. In the United States, the entry-level Xbox Series S will now cost $379.99, up from $299.99, marking a 27% increase. Meanwhile, the Xbox Series X Galaxy Black model will jump from $599.99 to $729.99, a 22% hike. Some new titles developed by Microsoft-owned studios will also see a price increase from $69.99 to $79.99, up 14%.
European consumers will also feel the impact, with the Series S price climbing from €299.99 to €349.99, a 17% increase.
“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 website.
Although Microsoft did not specifically reference tariffs, the gaming industry continues to be affected by the 145% tariffs imposed by the Trump administration on various products manufactured in China, including most gaming consoles. Both Xbox and PlayStation consoles are primarily assembled in China, leaving them vulnerable to international trade tensions.
According to analysts, around 30 million units of the Series S and X models have been sold since their launch in late 2020.
Sony, for its part, announced earlier this month that it would raise PS5 prices in select international markets — notably excluding the U.S. — as it grapples with similar supply chain and cost challenges.
The price hikes are expected to reshape the competitive landscape heading into the holiday season, potentially influencing consumer choices amid global economic uncertainty.