Microsoft raises prices of Xbox video game consoles due to ‘market conditions’

During an event commemorating Microsoft’s 50th Anniversary in Redmond, Washington, on April 4, 2025, Microsoft CEO Satya Nadella delivered a speech.

Microsoft announced on Thursday that due to market conditions, it has raised the recommended retail prices of its Xbox gaming consoles and certain controllers globally. This will result in consumers paying more for consoles this holiday season, which is attributed to the impact of President Donald Trump’s tariffs on imports.

The price adjustments also extend to some new first-party games, but existing video game titles will remain unaffected. Microsoft emphasized that these changes were made after careful consideration of market conditions and rising development costs, with a continued focus on providing various ways to play games across different screens and ensuring value for Xbox players.

Nintendo and Sony have also recently revealed plans to raise prices. Nintendo introduced the Switch 2 console priced at $449.99, up from the original $300 Switch, and Sony announced an increase in the cost of the disc drive-free PlayStation 5 in certain regions, effective April 14.

In the U.S., the entry-level Xbox Series S with 512GB storage now costs $379.99, up from $299.99, while the flagship Xbox Series X is priced at $599.99, up from $499.99. The price of the special edition of the Xbox Wireless Controller will rise to $79.99 from $69.99.

Microsoft stated that the recommended pricing for some new games during the holiday season will be $79.99, with major Microsoft titles seeing a price increase to $70 from $60 in 2023. The rising costs of developing popular video games have become a significant concern for Microsoft, especially following its acquisition of Activision Blizzard for $75.4 billion in 2023.

Microsoft reported increased sales of Call of Duty and Minecraft during the fiscal third quarter.