Microsoft recently made headlines when it announced massive price hikes for its Xbox consoles, mirroring the trend in the industry and acknowledging increased costs of development. The gaming industry’s response to a changing economy These changes come on the heels of Nintendo’s recent price increases for its game consoles.
With that in mind, the Xbox Series X is still considered expensive with its retail price of $599.99. This is a big $100 retail increase, which is a 20% hike from its prior MSRP. Oh, and first-party Xbox controllers are going up in price $5, too, bringing the retail price for them to $64.99. These rulings were announced via a message posted to an MSP’s help page on Microsoft’s website.
In announcing these changes, Microsoft took great pains to assert the thoughtful deliberation that was clearly put into this decision.
“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.” – Microsoft
The timing of Microsoft’s announcement closely follows Nintendo’s decision to maintain the U.S. price of its upcoming Switch 2 system at $449.99 while increasing prices for controllers and other accessories. This norm is alarming to economic specialists. They caution that the tariffs imposed under the Trump administration on foreign goods, particularly technology, are causing price fluctuations within the gaming space.
In practice, the tariffs have had a big impact on countries such as China. It’s a key supplier of important chips and components for Xbox consoles. As these costs continue to climb, manufacturers have no other option but to absorb a portion of these costs and inevitably raise prices to consumers.
Microsoft noted that availability for both the Xbox Series S and X may fluctuate depending on various factors including retailer stock and regional markets.
The gaming industry is learning to live with new economic realities. Consumers are extremely focused and anticipating further guidance on inflationary pricing strategies and product allocations.
