Microsoft raises Xbox prices in US, citing market conditions and rising costs

Microsoft revealed that it is raising the prices of its Xbox video game consoles, controllers, and games.

Steep Increases Across Consoles and Accessories

Microsoft has announced significant price hikes for its Xbox video game consoles, controllers, and games in the U.S., with increases reaching up to $130. The company attributed the changes to “market conditions” and the escalating costs of game development.

• The Xbox Series S, previously priced at $299.99, now costs $379.99—an $80 jump.
• The Xbox Series X saw a $100 increase, rising from $499.99 to $599.99.
• A new 2TB premium edition of the Xbox Series X is priced at $729.99, up by $130 or 21%.
• Special edition Xbox Wireless Controllers now cost $79.99, up from $69.99.

Game Prices Also Climb

Starting this holiday season, new Xbox games will be priced at $79.99, a $10 increase from the $70 standard introduced in 2023.

Despite these changes, Microsoft confirmed that Xbox Game Pass—its subscription service for access to hundreds of games—will remain at $9.99 to $19.99 per month.

Industry-Wide Price Adjustments

Microsoft’s price hike follows similar moves by industry competitors:

• Nintendo will launch its upcoming Switch 2 console at $449.99, significantly higher than the original Switch’s $300 launch price in 2017.
• Sony increased PlayStation 5 prices by 11% in Europe, the U.K., Australia, and New Zealand. While still $499.99 in the U.S., the PS5 now costs around $569 in European markets due to inflation and currency shifts.

Rising Game Development Costs a Key Factor

Game development expenses have surged dramatically. Microsoft’s acquisition of Activision Blizzard in 2023 for $68.7 billion underscored this trend. According to Patrick Kelly, Activision’s head of creative, each of the last three Call of Duty titles cost between $450 million and $700 million to develop—the highest known development costs in video game history.