Microsoft has raised the price of its Xbox consoles around the world, pointing to growing development costs and what it calls “challenging market conditions.” The company hasn’t directly blamed US tariffs for the hikes, but experts say they likely played a role.
In the UK, the Xbox Series S now costs £299.99 — up by £50. In the US, prices for the more powerful Series X model have climbed even more steeply, increasing by between $100 and $130, depending on the version. European and Australian gamers are also feeling the pinch, with price increases of €80 and $50 AUD respectively for the Series S.
Typically, gaming consoles drop in price over time, especially after a few years on the market. But this generation has flipped that trend on its head. Instead of discounts, players are seeing higher price tags — even for hardware that’s been out for a while.
In a blog post, Microsoft acknowledged that these changes may be hard for some consumers, but said they were made “with careful consideration,” citing inflation, rising production expenses, and global economic pressures.
Some in the industry say the price hikes were bound to happen. Kedhrin Gonzalez, founder of Rip & Tear Studios, told the BBC he believes tariffs were a major factor, and said gamers would bear the brunt of the increase. “This could hurt Microsoft’s already modest Xbox sales, and it may not be the last hike we see,” he warned.
Christopher Dring, editor of The Game Business newsletter, agrees that US tariffs — especially on components made in China — likely influenced the decision. But he also pointed to broader issues: currency fluctuations, inflation, and the rising costs of both hardware and game development.
“The number of people playing on consoles hasn’t grown much in over two decades,” Dring said. “But the costs of making consoles and games have exploded. Even a small tariff or cost change can hit profits hard.”
And it’s not just the consoles getting more expensive. Microsoft has confirmed that some of its new first-party titles could cost up to $79.99 starting in 2025 — matching Nintendo’s recently announced price for Mario Kart World. That price sparked backlash among players, who called it “inaccessible.”
Unlike Nintendo, which often offers cheaper digital-only versions, Microsoft says its pricing will be the same whether you buy a game digitally or in a physical box. The company stressed it doesn’t plan to raise prices on existing titles — only certain new releases — and noted that game prices may vary by country and platform.
As development costs soar and economic pressures mount, it seems the days of gaming getting cheaper over time may be coming to an end.
