On May 1, 2025, Microsoft announced significant price increases for its Xbox Series X and S consoles, accessories, and select first-party games, effective immediately for hardware and starting this holiday season for games. The Xbox Series X now retails for $599.99 (up $100), while the Series S 512GB model costs $379.99 (up $80). First-party games like Call of Duty and Fable will hit $79.99, aligning with industry trends. This move, attributed to “market conditions” and rising development costs, has sparked debate among gamers and analysts about affordability, competition, and the gaming industry’s future.
Breakdown of Price Increases
Consoles
Xbox Series X (1TB, Disc Drive): From $499.99 to $599.99 (+$100)
Xbox Series X (Digital Edition): From $449.99 to $549.99 (+$100)
Xbox Series X (2TB Galaxy Black Special Edition): From $599.99 to $729.99 (+$130)
Xbox Series S (1TB): From $349.99 to $429.99 (+$80)
Xbox Series S (512GB): From $299.99 to $379.99 (+$80)
These hikes apply globally, with the U.S. facing the steepest increases. For example, in the UK, the Series X rose by £20 to £499.99, and in Europe, it increased by €50 to €599.99. The Series S, previously untouched by price hikes since its 2020 launch, now sees its first adjustment, making entry-level Xbox gaming pricier.
Accessories
Xbox Wireless Controller: From $59.99 to $64.99 (+$5)
Xbox Wireless Headset: From $99.99 to $119.99 (+$20)
Elite Controllers: Some models now reach $199.99
Microsoft’s Rationale
Microsoft cited “market conditions” and “rising cost of development” as primary drivers. While not explicitly mentioning U.S. tariffs under President Trump, the timing suggests their influence. Consoles, manufactured in China, face 145% tariffs, increasing import costs. Game development costs have also skyrocketed—Call of Duty: Black Ops Cold War reportedly cost $700 million to produce. Microsoft’s $75.4 billion acquisition of Activision Blizzard in 2023 further underscores the financial pressures of producing AAA titles.
The company acknowledged the “challenging” nature of these changes, emphasizing its focus on “offering more ways to play” and ensuring
