Microsoft has significantly raised prices for its Xbox console, citing increasing development costs and what it called “market conditions”.
The increases vary from country to country, with Xbox Series S consoles going up by £50 to £299.99 in the UK.
The US has seen even steeper price rises, with the Series X increasing in price by between $100 (£75) and $130, depending on the model.
It comes as US tariffs – which experts predict will increase prices for consumers – stir global economic uncertainty. However, Microsoft has not explicitly said tariffs were behind the increase.
Xbox prices are also rising in other countries around the world, with the Series S increasing by €80 in Europe and $50 in Australia.
It represents a big change in an industry which would typically see prices go down in the years after a console’s launch.
“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.”
Kedhrin Gonzalez, founder of Rip & Tear studios, told the BBC he felt the price rise was “inevitable” and “catalysed by current tariff disruptions”.
“Gamers will suffer most, with little hope of prices decreasing,” he said.
“This could significantly impact Microsoft’s already modest Xbox sales and potentially trigger broader industry repercussions.
“This probably won’t be the last price hike we see.”
And Christopher Dring, who writes about the gaming industry in The Game Business newsletter, told the BBC tariffs were “certainly” part of the decision to increase prices.
“With accessories and components made in China, the connection is pretty obvious,” he said.
But he said there were other factors at play, such as inflation, changes in exchange rates and the “general rising cost of business”.
“All of this is playing havoc in an industry that is seeing limited growth,” he said.
“The console game sector has barely grown in terms of users in over 20 years, but costs of manufacturing and game development continue to rise exponentially.
“Any cost increases, even a small tariff, can have a serious impact on the profitability of these devices.”
Historically, in the years following a console’s release it would drop in price, but this generation has seen the opposite.
Sony originally listed the PlayStation 5 digital edition at £360 in the UK when it launched in 2020, but over the years its price has increased to its current £429.99 RRP.
Meanwhile, the cost of future Xbox games is also in question, with the firm revealing it anticipated “some of our new, first-party games” would cost $79.99 in 2025.
This is the same retail price Nintendo announced for its upcoming Mario Kart World – a cost which caused concern amongst gamers who called it “inaccessible”.
But unlike Mario Kart, which will cost less if bought digitally rather than in a physical box, Microsoft said its new price would be the same across the board.
It also clarified it did not plan to increase the price of existing games, only certain new titles developed by the firm itself.
But Microsoft declined to say whether it plans to increase the price of some future games in the UK as well.
“Local pricing may differ across countries and platforms,” the firm said.
