Microsoft hikes Xbox prices worldwide as gaming industry faces tariff
uncertainty
[May 03, 2025] By
WYATTE GRANTHAM-PHILIPS
NEW YORK (AP) — Amid a backdrop of ongoing tariff uncertainty, more and
more gamers are facing price hikes.
Microsoft raised recommended retailer pricing for its Xbox consoles and
controllers around the world this week. Its Xbox Series S, for example,
now starts at $379.99 in the U.S. — up $80 from the $299.99 price tag
that debuted in 2020. And its more powerful Xbox Series X will be
$599.99 going forward, a $100 jump from its previous $499.99 listing.
“We understand that these changes are challenging," Microsoft wrote in a
Thursday Xbox support update and subsequent statement sent to The
Associated Press. The tech giant didn't point to tariffs specifically,
but cited wider “market conditions and the rising cost of development.”
Beyond the U.S., Microsoft also laid out Xbox price adjustments for
Europe, the U.K. and Australia. The company said all other countries
would also receive updates locally.
Some Xbox accessories, including wireless controllers, are impacted too
— as well as headsets in the U.S. and Canada. And further down the road,
Microsoft said it also expects to make some of its new, first-party
games more expensive this holiday season — with a price tag of $79.99.
The price hikes arrive during a turbulent and uncertain time for the
gaming industry, largely due to new tariffs implemented by U.S.
President Donald Trump — and responding retaliation from targeted
countries, notably China. Economists have warned that the steeper levies
will result in higher prices on a range of consumer goods relying on a
global supply chain today, including electronics.
And Xbox players aren’t the first gamers to feel impacts amid these
ongoing trade wars. Last month, Sony, for example, raised its
recommended retail pricing for PlayStation 5 consoles in select markets
— including countries in Europe, the Middle East and Africa, as well as
Australia and New Zealand. At the time, the company cited “a challenging
economic environment, including high inflation and fluctuating exchange
rates.”
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A Microsoft Xbox Series X video game console is seen, on Dec. 7,
2021, in Marple Township, Pa. (AP Photo/Matt Slocum, File)
 Preorders for Nintendo’s
highly-anticipated Switch 2 were also delayed in April as retailers
assessed the potential impact of tariffs. Nintendo later confirmed
that some Switch 2 accessories would see price adjustments — but
maintained that its previously-announced baseline price for the
console, $449.99, would remain the same.
The starting $449.99 price for the Switch 2 is significantly higher
than the original Switch’s $299 price tag. And while new bells and
whistles may account for a sizable portion of that hike, experts
have previously noted that new import taxes are also a contributor.
While companies across industries have already shared weaker or
cloudy outlooks amid tariff uncertainty, larger impacts on their
bottom lines may not be seen until farther down the road. The Xbox
price hikes were announced just one day after Microsoft posted a
strong earnings report.
For the January-March quarter, the Redmond, Washington-based company
raked in $70.07 billion in revenue, with a net income of $25.8
billion. Microsoft also saw a 6% increase for revenue in its
personal computing unit, which includes its laptop business and Xbox
services. But that was before many of Trump’s latest tariffs took
effect.
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