Microsoft Raises Xbox Prices, Citing ‘Market Conditions’

Microsoft raised the recommended retailer pricing for its Xbox consoles and controllers worldwide, effective Thursday (May 1), and said it expects to raise the price of its new, first-party games starting during the holiday season.

“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” the company said in a blog post. “Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”

The pricing for Xbox headsets will change in the United States and Canada only, and some Xbox controllers will remain the same price, per the post.

Microsoft didn’t say if U.S. tariffs played a role in the price hikes, but the company relies on overseas manufacturing, including in China, Bloomberg reported Thursday. During its Wednesday (April 30) earnings call, the company said tariff uncertainty has caused computer makers’ inventory to rise to higher-than-usual levels.

Microsoft raised the price of the Series S 512GB console $80, to $380, and the Series X console $100, to $600, the report said. The increase planned for certain games will raise their price $10 to $80, per the report.

It was reported April 29 that the CEOs of Walmart, Target and Home Depot told President Donald Trump during a meeting that while they have kept prices low despite tariffs, the situation can’t last.

The executives said higher prices would be tough to avoid and some products could become scarce if retailers choose not to sell them due to tariff costs.

Retailers have taken steps to deal with the tariffs. For example, Walmart put some winter holiday orders from Chinese manufacturers on hold, Target paused shipments of products it buys directly from Chinese manufacturers, and Amazon canceled some vendor orders from China once tariffs were announced.

Small– to medium-sized businesses (SMBs) are also being forced to make tough choices as they seek new ways to share, offset or avoid costs, or risk ceding the global marketplace to larger rivals, PYMNTS reported Monday (April 28).