On Thursday, Microsoft announced that it will raise Xbox console prices globally, citing “market conditions,” just days after Sony implemented a similar increase for its PlayStation 5. Additionally, the company plans to increase prices for certain new games developed by its subsidiaries.
“We recognize that these adjustments are difficult, and they were made after careful consideration of current market dynamics and increasing development costs,” Microsoft stated on its website.
Although not directly mentioned, it is widely believed that tariffs imposed by former U.S. President Donald Trump on trading partners in Washington have also impacted the gaming industry’s pricing landscape.
Xbox consoles, primarily manufactured in China, are affected by the 145 percent U.S. tariffs on various products imposed during the Trump administration.In the United States, the entry-level Xbox Series S will increase from $299.99 to $379.99, representing a 27 percent rise.
The high-end Series X Galaxy Black model will now be priced at $729.99, up from $599.99, a 22 percent increase.Furthermore, some new titles from Microsoft-owned studios will see prices rise to $79.99, marking a 14 percent increase from the current $69.99.In Europe, the Series S will go from 299.99 euros to 349.99 euros, a 17 percent increase.
Since their launch in late 2020, the Series S and X have sold approximately 30 million units, according to industry analysts. In mid-April, Sony announced price hikes for some PlayStation 5 models in certain markets, such as Europe, but did not include the United States.