In a climate of persistent tariff uncertainty, the cost of gaming has been on the rise, directly impacting players worldwide. Just recently, Microsoft announced it is increasing the suggested retail prices for its Xbox consoles and controllers internationally. In the United States, for example, the Xbox Series S now starts from $379.99, which represents an $80 increase from its launch price of $299.99 back in 2020. The more advanced Xbox Series X will see its price rise to $599.99, up $100 from its previous cost of $499.99.
In a statement updated on Xbox support and also sent to media outlets, Microsoft acknowledged the difficulty these price changes present to consumers. The tech behemoth stopped short of directly blaming tariffs but pointed to broader “market conditions and the escalating cost of development” as reasons for the increase in prices.
Besides the United States, Microsoft has also indicated that similar price adjustments will occur in Europe, the U.K., and Australia, with local updates expected for other markets too. The pricing strategy is not limited to consoles alone—certain Xbox accessories, like wireless controllers and in some regions, headsets, will also become more expensive. Additionally, later in the year, Microsoft anticipates that its new first-party games will retail at higher prices, moving up to $79.99, especially during the holiday season.
These price changes occur during a tumultuous period for the gaming sector, much of which is due to the recently imposed tariffs by the previous U.S. administration, leading to retaliatory tariffs from affected countries like China. Economists caution that these increased duties are likely to raise prices on a wide range of consumer electronics, which depend on global supply chains.
Players in the Xbox ecosystem are experiencing similar pressures already felt by other gamers. Last month, Sony announced an increase in recommended retail prices for its PlayStation 5 consoles across selected markets, including regions in Europe, the Middle East, and Africa, in addition to Australia and New Zealand. Sony attributed these changes to “a challenging economic climate, marked by high inflation and volatile exchange rates.”
Nintendo also faced delays in preorders for the eagerly awaited Switch 2 in April, as retailers weighed the tariff impacts. Although Nintendo confirmed potential price hikes for some Switch 2 accessories, they have maintained the previously declared console price of $449.99 would remain static. This introductory price is notably higher than the original Switch’s price tag of $299. While technological enhancements explain some of the increase, experts have previously mentioned that new import taxes play a role.
While many businesses have already reported weaker or uncertain forecasts amidst tariff tensions, significant effects on their financial outcomes might not become evident until later. Microsoft’s price increase follows closely on the heels of the company’s strong earnings report, showing they garnered $70.07 billion in revenue with a net income of $25.8 billion for the January-March quarter. This report recorded a 6% revenue boost in their personal computing division, which encompasses its laptop ventures and Xbox services; however, this was before the most recent tariffs were enforced.