Gaming Costs Rise as Microsoft Announces Second Xbox Price Hike
New York, NY – Microsoft is raising prices on its Xbox consoles for the second time this year, citing a challenging economic landscape and increasing costs. The price adjustments, set to take effect October 3rd, reflect growing pressures on the gaming industry from tariffs, supply chain issues, and uncertain consumer spending.
The Xbox Series S, offering 1 terabyte of storage, will now retail for approximately $450. The more powerful Xbox Series X will see a price increase to around $650. A special edition Galaxy Black Series X,boasting 2 terabytes of storage,will be available for nearly $800.
This latest increase follows a price hike implemented in May across key markets including the US, Europe, Australia, and the UK. Combined, these adjustments represent a $150 increase for Xbox Series consoles in just six months, a potentially significant factor for consumers already grappling with high inflation.
“These price increases aren’t about maximizing profits, but rather a necesary response to external economic forces,” explains Joost Van Dreunen, a video game industry expert and professor at NYU Stern School of Business. “Increased tariffs, especially those imposed during the Trump administration on goods imported from manufacturing hubs like China, are driving up equipment costs and squeezing margins.”
Microsoft isn’t alone in facing these challenges.Sony recently increased the price of its PlayStation 5 by approximately $50 in the US, with the premium PS5 Pro model now priced at $749.99.
Importantly, Microsoft has stated that prices for accessories like controllers and headsets, as well as console pricing in markets outside of those previously adjusted, will remain unchanged.
Industry analysts had anticipated strong console sales this year, fueled by the anticipated release of blockbuster titles like “Grand Theft Auto VI” and the potential launch of the Nintendo Switch 2. However, these price increases, coupled with reported delays in game releases, are casting a shadow over the short-term outlook for the video game sector. The rising costs may force gamers to reconsider thier spending, potentially slowing the growth expected from this key entertainment segment.
