Microsoft has announced significant price increases for its Xbox consoles, citing rising development costs and evolving market conditions. The move affects buyers worldwide, with consumers in the UK, US, Europe, and Australia all seeing steep hikes in retail prices.
In the UK, the Xbox Series S has gone up by £50, now retailing at £299.99. Meanwhile, the more powerful Xbox Series X has seen even sharper increases in the United States, with price jumps between $100 and $130 depending on the model.
The pricing change marks a departure from traditional console pricing trends, where hardware costs typically decline over time following a launch. Instead, Microsoft’s new pricing structure reflects a broader industry shift—one that includes rising production costs and potential ripple effects from international tariffs.
In a blog post, Microsoft acknowledged the challenges the price increases may pose to customers, stating that the decision was made “with careful consideration given market conditions and the rising cost of development.”
Xbox consoles have also become more expensive in other regions, with the Series S rising by €80 in Europe and AU$50 in Australia. Although Microsoft has not directly linked the hikes to US trade tariffs, industry analysts believe those measures are playing a significant role.
Kedhrin Gonzalez, founder of Rip & Tear Studios, told the BBC that the price changes were “inevitable” and likely “catalysed by current tariff disruptions.” He warned that the increases could hurt Microsoft’s already modest Xbox sales and forecast that further hikes may follow.
Gaming industry analyst Christopher Dring echoed those concerns, suggesting that console makers could be adjusting prices globally to offset the impact of U.S. tariffs on their most critical market. “Rather than simply increase prices in the U.S., it’s possible the likes of PlayStation could raise pricing globally to protect the American market,” he said.
The pricing shift also extends to games. Microsoft confirmed it plans to raise the cost of some new, first-party titles to $79.99 starting in 2025. This mirrors recent pricing announcements from Nintendo, which faced backlash for setting its upcoming Mario Kart World at a similar price point.
While Microsoft said current game prices will remain unchanged, it did not clarify whether UK consumers would also see price increases for new titles. “Local pricing may differ across countries and platforms,” the company stated.
As the industry grapples with higher costs and economic uncertainty, players may need to brace for a new era of gaming economics—one where £75 or $80 games and more expensive consoles become the norm.
