In different parts of the world, gamers learn about a new, more expensive reality, and they are stunned. Microsoft has performed a price increase that not only affects its entire Series consoles but also all the additional parts like controllers and headsets. And if the bad news were not enough, in case you decide to buy a new game by Microsoft this Christmas, the price will be $79.99. It is the largest Xbox price change that has happened since the Series S and X were released in 2020, and therefore, they are struggling hard.
How Big Are the Price Hikes?
The numbers speak for themselves. In the U.S., the entry-level Xbox Series S 512GB has jumped from $299.99 to $379.99—a steep 27% increase. The 1TB Series S is now $429.99. As for the Series X lineup, the standard model now goes for $599.99, while the new Series X Digital sits at $549.99. If you’re eyeing the new 2TB Galaxy Black Special Edition, expect to pay $729.99—up from the previous $599.99.
Accessories have also experienced similar jolts. The base Xbox Wireless Controller now retails for $64.99, while limited editions or special versions go as high as $89.99. The Xbox Elite Wireless Controller Series 2 (Full) now reaches $199.99. Headsets also cost more, particularly in the U.S. and Canada.
And this isn’t limited to North America. Europe and Australia are experiencing similar jumps. In Europe, the Series S has increased from €299.99 to €349.99. In Australia, the Series S begins at $549, and the Series X at $849. Price increases are occurring just about everywhere, with only a couple of small regional ones.
What’s Driving the Price Increases?
Microsoft describes the price increases as a reaction to market trends and increased costs of developing games. Microsoft says it made the choices with care, aware that they’d be difficult for customers.
But there is more to it. The majority of Xbox consoles are produced in China, and new U.S. tariffs—some as high as 145%—have made it much more expensive to bring electronics into the country. The tariffs, rolled out under the Trump administration, are prompting companies such as Microsoft to consider how they position their products to remain profitable.
In the meantime, game development costs more than ever. With increasing teams and advancing tech, making high-quality titles involves enormous investments. To catch up, publishers are beginning to transfer those expenses to gamers.
How Does Xbox Compare to PlayStation and Nintendo?
Microsoft is not alone in increasing prices. Sony just raised PlayStation 5 prices across several markets—the second time in just three years. Nintendo’s soon-to-be-released Switch 2 will launch at $450, which is already generating some outrage. Nintendo has also increased accessory costs and will likely follow with higher game costs as well.
The entire video game industry is under the same pressures. Over the last five years, the baseline cost of AAA games has risen from $60 to $70—and now, $80 is becoming the new standard for major releases. Analysts caution that these hikes aren’t solely about a single company. They are indicative of a drastic change in how the gaming business operates.
What It Means for Gamers
For gamers, it’s increasingly costly than ever before to enter the most recent generation of gaming. Consoles for $299 and games for $60 are rapidly becoming a thing of the past. Microsoft has spoken about providing value in alternative ways—via Game Pass subscriptions and fresh hardware options—but the fact of the matter is that the price to remain up to date is increasing.
Since their introduction, the Xbox Series S and X sold approximately 30 million units. As costs go up, it’s natural to wonder how many new gamers will be able—or want—to get into the game. And how will old-school enthusiasts adapt to this pricier environment?
Gamers are moving into a new age—one in which economics have an equal hand as innovation. In the meantime, gamers will need to endure a marketplace where each new upgrade, accessory, or release is more expensive.
