Microsoft Raises Xbox Prices Worldwide, Blames ‘Market Conditions’

Just like every other industry, gaming is being influenced by uncertainties related to U.S. tariff policy. At least that’s what seems to be the case with Microsoft, which has recently raised prices on its popular gaming console — Xbox.

The suggested retail price for the Xbox Series S as recommend by Microsoft is now $379.99 in the U.S. Previously, this series retailed for $299.99. The upgraded Xbox Series X went up $100 to $599.99. The new pricing is already reflected in the Xbox Store.

While Microsoft did not cite tariffs specifically, the Bill Gates-founded company blamed “market conditions and the rising cost of development.” Interestingly, Microsoft waited to raise prices after releasing an impressive earnings report this week.

“We understand that these changes are challenging, and they were made with careful consideration,” Microsoft wrote on an update page.

Countries outside the U.S. were also affected by changes to Xbox prices. Microsoft posted new prices for gamers in the U.K., Europe, and Australia. Retailers in countries beyond these will be notified separately.

Accessories for the Xbox, like wireless controllers and headsets, were also adjusted. Microsoft noted games will be pricier in the upcoming holiday shopping season, with some games going as high as $79.99.

Tariff-Related Price Hikes Purportedly Hitting More Than Just Xbox in the Gaming Industry

Xbox fans aren’t the only ones feeling the pressure of higher prices. In select markets, Sony increased the retail price for its PlayStation 5 console last month. Regions directly affected were the Middle East, Europe, Africa, New Zealand, and Australia. At the time, Sony blamed the pricing adjustments on “a challenging economic environment, including high inflation and fluctuating exchange rates.”

Nintendo Switch gamers are not immune, either. Preorders for the Switch 2 were delayed last month as retailers dealt with the uncertainties of tariffs. After which, Nintendo admitted price increases are needed for accessories but remained committed to the original retail price of $449.99 for the console.

In January, Microsoft announced a price hike for its Microsoft 365 subscribers. After adding the software company’s Copilot AI tool, subscriptions for the 365 Family Plan went up to $129.99 annually. To sign up for the Personal plan, users need to shell out $99.99 per year.