Microsoft Raises Xbox Series XS Prices – What You Need to Know

Microsoft has officially announced a price increase for its Xbox Series X and S consoles, which will take effect immediately due to rising import and development costs. The new price for the Xbox Series X in the US will be $599, an increase from $499, while the Series S will now retail at $379.99, up from $299.99. Additionally, first-party Xbox games are expected to rise to $80 by the holiday season of 2025. This decision comes as part of broader economic challenges, including ongoing trade tensions affecting global markets. UK prices will see more modest increases, but US consumers are facing the largest hikes. The company emphasizes its commitment to providing value across platforms, despite these increases.

The price increase may lead to decreased sales as consumers could find the new prices for Xbox consoles and games harder to justify during a time when many are tightening their budgets. The luxury status of gaming consoles makes such price hikes contentious, particularly among cost-conscious gamers.

Background on the Xbox Series X/S reveals that these consoles are part of Microsoft's ongoing strategy to dominate the gaming market. Launched in November 2020, the Series X is touted as the most powerful console, while the Series S is aimed at a more budget-friendly segment, both supporting features like backward compatibility and Game Pass, which enhances their value against competitors like the PlayStation 5. As Microsoft expands its ecosystem, this price adjustment reflects broader economic trends impacting the gaming industry.