Microsoft CEO Satya Nadella speaks during an event celebrating the 50th Anniversary of Microsoft in Redmond, Washington, on April 4, 2025.
Stephen Brashear | Getty Images News | Getty Images
Microsoft said Thursday that it has increased the recommended retail prices of its Xbox video game consoles and some controllers globally due to “market conditions.”
The announcement, which also affects some new first-party games, means consumers will be paying more for consoles this holiday season as they reckon with higher costs from President Donald Trump’s sweeping tariffs on imports.
“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” Microsoft said on a support page. “Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”
Microsoft said the increase will not hit existing video game titles.
Nintendo and Sony have also announced plans to charge more in recent weeks.
In April, Nintendo announced the $449.99 Switch 2 console, a step up from the original $300 Switch, and also lifted the price of games. Sony, citing inflation and currency changes, said its disc drive-free PlayStation 5 will become more expensive in Europe and three other countries, effective April 14. Prices for the PlayStation Plus subscription service, which allows people to download games and play against others online, also rose in some countries.
For Microsoft, the entry-level Xbox Series S with 512 GB of storage costs $379.99 in the U.S. as of Thursday, up from $299.99. The flagship Xbox Series X will go for $599.99, up from $499.99. Both consoles debuted in 2020. The price of the special edition of the Xbox Wireless Controller will increase to $79.99 from $69.99.
The recommended pricing for some new games will be $79.99 in the holiday timeframe, Microsoft said. In 2023, prices for major Microsoft titles rose to $70 from $60.
Popular video games have become more expensive to produce, an issue that is now of particular concern to Microsoft following the company’s $75.4 billion acquisition of Activision Blizzard in 2023. Activision Blizzard’s Call of Duty: Black Ops Cold War from 2020 cost upward of $700 million to make, Game File reported, citing an executive’s comments in a legal filing.
On Wednesday, Microsoft said sales of Call of Duty and Minecraft increased during the fiscal third quarter.
