Microsoft, Nintendo, and Sony Increase Console and Game Prices Due to U.S. Tariffs and Rising Costs

Microsoft, Nintendo, and Sony have announced price increases for their consoles and games due to rising production costs and new U.S. tariffs on imports from China and Vietnam. Microsoft's Xbox Series S and X prices rose by 27% and 20%, respectively, with new game prices reaching $79.99. Nintendo's Switch 2 will launch at $449.99, up from the original Switch's $300. Sony increased PlayStation 5 prices in select international markets. These changes reflect a shift in the industry, where prices typically decrease over time, driven by tariffs and higher development costs.

Microsoft Raises Xbox Prices by Over 20%

Microsoft confirmed on Thursday that it is increasing the recommended retail prices of its Xbox Series X and Series S consoles globally. In the U.S., the entry-level Xbox Series S has jumped from $299.99 to $379.99—a 27% increase—while the flagship Series X now retails for $599.99, up from $499.99. The company also announced that some of its new first-party games will be priced at $79.99 starting in the 2025 holiday season, up from the previous $69.99 standard.

In a statement, Microsoft cited “market conditions” and “the rising cost of development” as the primary reasons for the price adjustments. While the company did not explicitly mention tariffs, the timing of the announcement closely follows the reintroduction of sweeping import duties by former President Donald Trump, which notably exclude video game consoles from exemption. Xbox consoles are primarily manufactured in China, a country now facing U.S. tariffs as high as 145% on certain tech products.

“We understand that these changes are challenging,” Microsoft said in a blog post. “They were made with careful consideration given market conditions and the rising cost of development” Microsoft raises prices of Xbox video game consoles and controllers.

Nintendo’s Switch 2 Launches at $450 Amid Tariff Uncertainty

Nintendo’s new Switch 2 console, set to launch in June, will retail for $449.99 in the U.S.—a significant increase from the original Switch’s $300 launch price in 2017. The company also raised prices on several of its upcoming game titles, including the anticipated “Mario Kart World,” which will sell for $79.99.

The Japanese gaming giant initially delayed pre-orders for the Switch 2 to assess the potential impact of tariffs and shifting market dynamics. Most of Nintendo’s consoles are manufactured in China and Vietnam, both of which are subject to the new U.S. tariffs. Joost van Dreunen, a professor at New York University’s Stern School of Business, told Forbes that the tariffs hit Nintendo at a “vulnerable moment” during the rollout of its next-generation console Microsoft Hikes Xbox Prices, Games Hit $80 And Console Prices Jump More Than 20%.

Despite the uncertainty, Nintendo opted to maintain the $450 price point for the Switch 2 while increasing the cost of accessories and select games. The company has not publicly commented on the tariffs, but industry analysts suggest the pricing strategy reflects an effort to offset increased production and import costs.

Sony Increases PlayStation 5 Prices in Select Markets

Sony, the maker of the PlayStation 5, also raised prices for several PS5 models in April, though the increases were limited to select international markets, including Europe, Australia, and New Zealand. The U.S. market was notably excluded from the price adjustments. The disc drive-free PS5 Digital Edition, for example, now retails for £429.99 in the UK, up from its original launch price of £360.

Sony attributed the price hikes to inflation and currency fluctuations. However, like its competitors, the company’s consoles are primarily assembled in China, making them vulnerable to the new U.S. tariffs. While Sony has not directly linked its pricing decisions to the tariffs, the timing and geographic scope of the increases suggest a strategic response to global economic pressures Xbox: Microsoft raises prices.

Tariffs and Production Costs Drive Industry-Wide Shifts

The recent price increases across all three major console makers come amid a broader shift in the video game industry’s pricing model. Historically, console prices tend to decrease over time as production becomes more efficient. However, this generation has seen the opposite trend, with prices rising years after initial launches.

Industry experts point to several contributing factors. The reimposition of tariffs by the Trump administration has significantly increased the cost of importing consoles and components from China and Vietnam. While some tech products like smartphones and computers were exempted, video game consoles were not. This has placed additional financial pressure on manufacturers already grappling with higher development costs and supply chain disruptions.

Kedhrin Gonzalez, founder of Rip & Tear Studios, told the BBC that the price hikes were “inevitable” and “catalysed by current tariff disruptions.” He added, “Gamers will suffer most, with little hope of prices decreasing” Xbox prices hiked worldwide amid tariff uncertainty.

Christopher Dring, a gaming industry analyst, echoed this sentiment, stating that tariffs were “certainly” part of the decision-making process behind the recent price increases.

Game Prices Reach New Highs

In addition to hardware, game prices are also climbing. Microsoft and Nintendo have both announced that new titles will retail for $79.99, breaking the previous industry standard of $69.99. This follows a prior increase from $60 to $70 in 2023 for major titles.

The rising cost of game development is a key factor. Microsoft’s acquisition of Activision Blizzard in 2023 for $75.4 billion has brought renewed attention to the high production budgets of blockbuster titles. For example, Activision’s “Call of Duty: Black Ops Cold War” reportedly cost over $700 million to develop and market.

Microsoft emphasized that the new $79.99 price point will apply only to select new titles and not to existing games. Unlike Nintendo, which offers lower prices for digital versions of some games, Microsoft stated that its pricing will remain consistent across physical and digital formats Xbox console price increase.

References

• Microsoft raises prices of Xbox video game consoles due to 'market conditions'
• Microsoft Hikes Xbox Prices—Games Hit $80 And Console Prices Jump More Than 20%
• Microsoft raises Xbox prices globally amid tariff uncertainty
• Xbox prices hiked worldwide amid tariff uncertainty
• Xbox Hikes Consoles Prices More Than 25% Amid Trump Tariffs