Microsoft’s Xbox division announced Thursday it will increase prices on its gaming consoles, controllers, first-party titles, and accessories across key markets, including the United States, Europe, Australia, and the United Kingdom.
The decision comes as global supply chains continue to feel the strain from U.S. tariffs, prompting similar price hikes by competitors.
In a blog post, Xbox confirmed that the price of its high-end Xbox Series X console will rise by $100 to approximately $600 in the U.S. The price adjustment follows Sony’s recent move to raise prices on its PlayStation 5 console, with the newly launched PlayStation 5 Pro now retailing at around $700.
The adjustments reflect mounting pressure on console manufacturers from elevated manufacturing and logistics costs, largely driven by tariffs imposed under the Trump administration on major production centers such as China, Japan, and Vietnam. These levies have raised costs for hardware components and assembly, directly impacting consumer pricing.
Gaming consoles are expected to be the primary engine of growth for the global video game market in 2025. Nintendo is preparing to launch its next-generation Switch 2 console in June, having resumed U.S. pre-orders late last month after a delay caused by tariff-related uncertainty.
As development expenses rise across the industry, Xbox is also increasing the price of certain first-party titles to around $80. The move aligns with Nintendo’s recent pricing strategy for flagship titles like Mario Kart World and could signal a broader shift in standard game pricing.
However, analysts caution that these upward price trends may dampen consumer demand, particularly as households contend with inflation and the risk of a broader economic downturn. With discretionary spending under pressure, the video game industry faces a balancing act between recouping costs and maintaining growth momentum.
