Microsoft Hikes Xbox Prices Worldwide as Tariffs Shake Up the Gaming Market

Gamers, brace yourselves — the cost of console gaming is climbing, and fast.

Microsoft has officially raised the prices of its Xbox consoles, accessories, and even some upcoming games across the globe, citing rising development costs and shifting market conditions. While the company didn’t directly mention tariffs, the increases come as trade tensions and new import duties are rattling industries reliant on global supply chains — and gaming is no exception.

Starting this week, Microsoft’s Xbox Series S now comes with a U.S. price tag of $379.99, up sharply from its 2020 debut price of $299.99. The more powerful Xbox Series X has jumped to $599.99, a full $100 more than its previous $499.99 listing.

Accessories haven’t been spared either. Wireless Xbox controllers, headsets, and other gear in the U.S. and Canada are also seeing price bumps. And for gamers eyeing new first-party titles this holiday season, expect to pay up to $79.99 — part of Microsoft’s broader strategy to adjust to economic pressures.

These price increases aren’t limited to the U.S. Microsoft confirmed similar changes are rolling out in Europe, the U.K., Australia, and other international markets.

“We understand that these changes are challenging,” Microsoft said in a statement, pointing to inflation and higher development expenses. Still, the timing raises eyebrows, as the gaming industry grapples with new tariffs introduced by President Donald Trump, and retaliatory moves from key trade partners like China.

Microsoft isn’t alone. Sony recently raised the price of its PlayStation 5 in select regions — including parts of Europe, the Middle East, Africa, and Oceania — blaming inflation and currency volatility. Meanwhile, Nintendo’s much-anticipated Switch 2 faced preorder delays in April while retailers evaluated the potential fallout from trade disputes.

Although Nintendo is keeping its base Switch 2 price at $449.99, that’s still a steep hike from the original Switch’s $299 tag. Industry experts suggest tariffs and manufacturing costs are major contributors to that increase — even if Nintendo adds more features to justify it.

While Microsoft just posted a strong quarterly earnings report — with $70.07 billion in revenue and $25.8 billion in net income — the long-term effects of tariffs on its Xbox division remain to be seen. For now, the company is still riding momentum, with its personal computing segment (which includes Xbox) growing 6% in the last quarter.

But as costs rise and trade tensions deepen, gamers and developers alike may face more volatility ahead.

Source: AP News – Microsoft hikes Xbox prices worldwide as gaming industry faces tariff uncertainty