Microsoft is raising Xbox prices to $380 for the Series S and $600 for the Series X due to the trade war and increased development costs.

Taiwan • Business • 05/01 18:01
Microsoft is raising Xbox prices to $380 for the Series S and $600 for the Series X due to the trade war and increased development costs.

On May 1, 2025, Microsoft announced a price increase for the Xbox Series S and Series X consoles, accessories, and some games, effective immediately. The Series S has risen to $380, and the Series X has risen to $600. Prices for accessories like wireless controllers and headsets have also increased. Microsoft stated that the price adjustment is due to market conditions and rising development costs, affected by trade wars and supply chain pressures. This move makes Microsoft the latest company, after Sony and Nintendo, to adjust gaming hardware prices.

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05/01 18:01

Microsoft is raising Xbox prices to $380 for the Series S and $600 for the Series X due to the trade war and increased development costs.

On May 1, 2025, Microsoft announced a price increase for the Xbox Series S and Series X consoles, accessories, and some games, effective immediately. The Series S has risen to $380, and the Series X has risen to $600. Prices for accessories like wireless controllers and headsets have also increased. Microsoft stated that the price adjustment is due to market conditions and rising development costs, affected by trade wars and supply chain pressures. This move makes Microsoft the latest company, after Sony and Nintendo, to adjust gaming hardware prices.

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Price Increase for Xbox Consoles and Accessories

Microsoft has announced new suggested retail prices for Xbox consoles and accessories in the US market. The Xbox Series S (512GB) has been increased from $299.99 to $379.99, an increase of approximately 27%. The flagship model, Xbox Series X, has been increased from $499.99 to $599.99, a 20% increase. Additionally, the Xbox Series S 1TB version has been adjusted from $349.99 to $429.99, and the Series X 2TB Galaxy Black special edition has gone up from $599.99 to $729.99.

For accessories, the new price for the Xbox Wireless Controller (Core) is $64.99, with colored versions at $69.99, special editions at $79.99, and limited editions at $89.99. The high-end Elite Wireless Controller Series 2 (Full) reaches $199.99. For headsets, the Xbox Stereo Headset and Wireless Headset are adjusted to $64.99 and $119.99, respectively, limited to the US and Canada.

Game Prices to Increase to $80 by Year-End Holidays

Microsoft has also announced that starting in the 2025 holiday shopping season, the suggested retail price for some first-party new games will be adjusted from the current $69.99 to $79.99. This adjustment continues the trend from 2023 when Microsoft raised game prices from $60 to $70. This price change will apply to both digital and physical versions, with existing games remaining unaffected.

Microsoft Official Statement: Considering Market and Development Costs

In an official statement, Microsoft said: "We understand these changes are challenging for players, and all adjustments are made with full consideration of market conditions and rising development costs." The company emphasized its commitment to offering more game options across platforms and ensuring Xbox users get their money's worth.

Although Microsoft did not explicitly state whether this price adjustment is directly related to US tariff policies, several media outlets noted that Xbox consoles have long relied on overseas production in places like China. The recent US government tariffs on imported electronics from China have led to increased raw material and assembly costs, putting pressure on the gaming hardware industry.

Trade War and Industry Cost Pressure as Background for Price Adjustment

According to reports from The Guardian and CNBC, the new round of tariff measures promoted by former US President Trump covers multiple electronic products, directly impacting game console manufacturing. Xbox consoles, primarily produced in China, are subject to import tariffs as high as 145%. Microsoft also mentioned in its April 30 financial report meeting that tariff uncertainties have led to abnormal inventory levels for computer manufacturers, reflecting supply chain pressures.

Additionally, the surge in game development costs is a significant factor in this price adjustment. After Microsoft's $75.4 billion acquisition of Activision Blizzard in 2023, it has to bear higher content development expenses. According to Game File, Activision's 2020 release of Call of Duty: Cold War had a development cost of up to $700 million, indicating the growing resource demands for top-tier game productions.

Industry Movements: Nintendo and Sony Also Adjust Prices

Microsoft is not the only gaming hardware manufacturer adjusting prices. Last month, Nintendo announced that the Switch 2 console would launch at $449.99, which is significantly higher than the first-generation Switch's price of $300. Sony, starting mid-April, raised the price of the PlayStation 5 in Europe and other regions and adjusted the PlayStation Plus subscription service fees. These actions indicate that the overall gaming industry is facing multiple pressures from inflation, exchange rate fluctuations, and tariff policies.

Industry Response and Market Observation

Despite some players expressing dissatisfaction with the price increases, industry observers point out that this wave of price adjustments reflects the gaming industry's strategy to adapt to changes in the global economic and policy environment. Microsoft emphasized in its statement that adjusting prices is to ensure products can continue to innovate and meet market standards. The company also stated that it will continue to invest resources in new game development and services to maintain its competitiveness in the industry.

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