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Microsoft Is Raising Prices Across The Xbox Ecosystem

Microsoft has announced significant worldwide price hikes across the Xbox ecosystem, and they’re shocking to say the least.

Starting today, every Xbox console in the United States is seeing its price increase by a minimum of $80. The 512GB model of the Xbox Series S is going from $299.99 to $379.99, while the 1TB model is going from $349.99 to $429.99. As for the Xbox Series X, the digital model is getting a bump from $449.99 to $549.99, the disc model is being upped from $499.99 to $599.99, and the 2TB special edition is getting raised from $599.99 to $729.99.

Xbox accessories are also subject to this round of price hikes. For example, the base version of the wireless controller is now priced at $64.99, whereas the Core and Full versions of the Xbox Elite controller are now $149.99 and $199.99 respectively. The full list of price changes for each region around the world can be found on the Xbox support page.

The Outer Worlds 2
The Outer Worlds 2 (Obsidian Entertainment)

Microsoft also confirmed that starting this holiday season, some new first-party games will cost $79.99. This will apply to both the physical and digital versions of games. These prices will not be applied retroactively to games that have already released, so titles like Doom: The Dark Ages, Avowed, and Indiana Jones and the Great Circle will not be getting bumped up in price. Microsoft hasn’t specified what new games would be given this new price, but one would imagine that their most notable heavy hitters such as The Outer Worlds 2, Gears of War: E-Day, Fable, and Perfect Dark would be among the games that will cost $80. I think it’s unlikely for games such as Clockwork Revolution, State of Decay 3, and the next project from Psychonauts 2 developer Double Fine Productions to be slapped with that steep price tag, so I wouldn’t worry too much about them.

These are steep price hikes and Microsoft has addressed them in a statement on their support page detailing the changes. “We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox player.”

While the rising cost of game development has been a persistent problem for the industry, the “market conditions” that Microsoft is referring to are the tariffs placed on nations around the world by the Trump administration. The video game industry swiftly faced its own crisis as a result of them when Nintendo delayed pre-orders of the Nintendo Switch 2 as they assessed market conditions and ultimately raised the prices of various Switch 2 accessories.

Xbox Series S

Even with that being the case, one has to wonder how much of a negative effect this will have on Microsoft and the Xbox brand. Xbox has severely lagged behind its competitors in sales this generation, so raising the prices to such a degree won’t help matters any, even if Microsoft has been pushing the Xbox ecosystem beyond just the console. Microsoft has also been working on prototypes for their own Xbox handheld device. Assuming that device comes to market, what should we expect it to be priced at given the current state of affairs? $500? There’s also the question of next-generation hardware. Should we expect it to start at a minimum of $600?

These questions also apply to Sony and the PlayStation brand. Over the years, Sony’s raised the price of the PlayStation 5 in various regions around the world, but they’ve held firm on the price in the U.S. The most aggressive they’ve gotten with hardware pricing recently was with the $700 PlayStation 5 Pro that released last year. At this point, it’s only a matter of time before they join Microsoft in raising the price of their consoles and their games. Gaming’s always been an expensive hobby, but it’s quickly becoming one that’ll push people out when it should be trying to bring people in.

As all this pertains to Xbox, I hope that the brand is able to weather this storm and thrive despite the negative effects that are sure to follow. Now more than ever, Microsoft will have to work hard to prove to people why they should buy into the Xbox ecosystem, especially if they want a console. All eyes will be on the upcoming Xbox Games Showcase that’s just over a month away to put their money where their mouth is.

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