In the gaming industry, consoles, controllers and other accessories reduce in price the older they get. But as President Trump’s tariffs continue to threaten to throw the global economy into turmoil, the opposite is happening: gaming products are getting more expensive.
Microsoft is the latest company to increase prices by bumping up the cost of its Xbox console, following Sony, which hiked the prices of its PlayStation devices in April.
Read on for everything we know about how and why game console prices are rising.
Xbox console prices rise by $100-$130
Due to “market conditions,” Microsoft will be raising the price of its Xbox products in the United States, Europe, Australia and the United Kingdom, Reuters reported. In the U.S., the Xbox Series X console will now retail for $600. According to the BBC, price increases vary per model, with some price increases reaching $130.
Xbox games may see price spikes as well. Microsoft shared that “some of our new, first-party games” will cost $79.99 this year.
“We understand that these changes are challenging,” the company said in a blog post, adding that the decision was “made with careful consideration given market conditions and the rising cost of development.”
Xbox Series S consoles are rising in Europe by €80 and in Australia by $50.
Microsoft plans to maintain its new pricing across its physical and digital products. They also confirmed that they do not intend to increase the price of existing games — only new games made by the company.
“Local pricing may differ across countries and platforms,” Microsoft clarified.
Experts say price increase was “inevitable” and linked to tariffs
Microsoft has not mentioned the U.S. tariffs as a reason for its price increases, but many experts say the two are undeniably linked. According to Reuters, analysts have claimed that Trump’s tariffs could impact industry growth that could snowball into consumers doing less discretionary spending.
Christopher Dring, Editor-In-Chief and Co-Founder of The Game Business, told the BBC that tariffs were “certainly” a factor in Xbox’s price shifts.
“With accessories and components made in China, the connection is pretty obvious,” he told the outlet.
He clarified that it’s not the only element involved in the decision. Inflation, changes in exchange rates and the “general rising cost of business” are also involved.
“All of this is playing havoc in an industry that is seeing limited growth,” Dring added.
Founder of Rip & Tear studios Kedhrin Gonzalez echoed Dring’s diagnosis. He told the BBC that he thinks the price increase was “inevitable” and “catalyzed by current tariff disruptions.”
“Gamers will suffer most, with little hope of prices decreasing,” he said, adding, “This could significantly impact Microsoft’s already modest Xbox sales and potentially trigger broader industry repercussions.”
Unfortunately, Gonzalez doesn’t think this will “be the last price hike we see.”
