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Microsoft has announced huge price increases beginning May 1, 2025, for Xbox consoles and accessories. This is the first time Xbox prices have increased up noticeably since consoles came out in 2020. It looks like higher costs are becoming a trend across the gaming industry. Here’s a simple breakdown.
Xbox Series X and S: Prices up by 20% to 27%
The main Xbox Series X console now sells for $599.99 in the U.S., $100 more than before ($499.99). That’s a 20% increase.
The digital-only Series X also jumped up $100 to $549.99. On the other hand, a special black edition with 2TB has gone up by 21% to $729.99, which is up from $599.
There is an Xbox One Series S that is the cheapest, but it is also the most expensive. The 512GB model is up 27% to $379.99 (from $299.99), and the 1TB version rose 22% to $429.99.
Other countries like the UK (£50 up for Series S) and the EU (€599.99 for Series X) also saw similar price jumps.
Microsoft says these changes are because of “market conditions” and “rising development costs.” But experts point out that U.S. taxes on goods made in China, where Xbox consoles are built, are the primary reason.
Tariffs have also caused Nintendo and Sony to change their prices recently.
Xbox Games Price: New Games Cost $80 This Holiday
New Xbox games made by Microsoft, like Call of Duty, Fable, and State of Decay 3, will cost $79.99 this holiday season.
It’s up from $69.99. Similar to Nintendo’s upcoming Switch 2 Mario Kart game, which is $80. It’s over the $70 limit for 2023.
You won’t see a price change for older games, but the upcoming big-budget games will.
For example, Call of Duty: Black Ops Cold War cost over $700 million to create. Microsoft now faces these huge costs after buying the studio for $75.4 billion in 2023.
Accessories and Controllers: Small but Significant Increases
Other Xbox items also see price hikes.
- Standard Wireless Controllers increased to $64.99 (from $60).
- Elite Series 2 controllers now cost $199.99 (up $20).
- Headsets are up in price only in the U.S., with the Wireless Headset now at $119.99.
Microsoft said its adaptive controllers, made for people with disabilities, would stay the same price. This is good news for accessibility.
Why now? Taxes, Rising Costs, and Industry Trends
Price increases are timed. Console prices usually go down later in their lives to attract more buyers.
Sony’s PS2 and PS3 prices dropped and helped sales. Microsoft doing the opposite shows the pressure of global money problems:
- Tariffs: Xbox consoles are made in China and face high import taxes. Nintendo held back Switch 2 pre-orders because of taxes, and Sony increased PS5 prices in Europe.
- Development Costs: Now games take longer, require bigger teams, and use advanced tech. Microsoft’s Game Pass service is growing (revenue up 45% in Q3 2025) but people might get tired of paying.
- Competition: Microsoft risks losing customers to cheaper alternatives like the Switch 2 and PS5 Pro. In the online community, people are calling the price increases “crazy.”
The Big Picture: Gaming is Getting More expensive
Xbox price increase is part of a larger trend. Sony raised PS5 prices outside the U.S. in 2023, and Nintendo’s $450 Switch 2 was criticized even before it launched in June 2025. Also, physical game discs cost more because of Chinese tariffs.
For players, one upside might be Microsoft’s Play Anywhere program, letting digital $80 games work on both Xbox and PC.
But as gaming hardware gets more expensive and games push higher prices, the time when gaming was more affordable seems to be ending.
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Microsoft’s decision to raise prices for the Xbox Series X and games shows the tough economic situation but also tests customer loyalty.
The company hopes that allowing flexibility will balance the higher sticker price of Game Pass, which now costs $19.99/month. How players react to these new prices will affect Xbox’s future.
As of right now, gaming prices are going up, and it seems like this will keep going.
