Microsoft Raises Xbox Console Prices Again Amid Economic Pressures

REDMOND, Wash. — Microsoft Corp. has announced a price increase for its Xbox Series X and Series S consoles in the United States, effective October 3, 2025. The Xbox Series X will rise to $649.99 from $599.99, while the Series S will increase to $399.99 from $379.99. This marks the second major increase within a year.

Microsoft cites ‘changes in the macroeconomic environment’ as the reason for the hikes, a phrase that many analysts believe refers to escalating tariffs affecting imported electronics. The company’s decision comes as the gaming hardware market faces sluggish sales, with the Xbox trailing competitors like Sony‘s PlayStation 5 and Nintendo‘s Switch.

These price adjustments follow a previous increase in May 2025, when the Series X’s price jumped from $499.99 to $599.99 and the Series S rose from $299.99 to $379.99. Both models are seeing additional price increases of $50 and $20, respectively.

Despite the price hikes for consoles, Microsoft has confirmed that prices for controllers and headsets will remain unchanged, indicating that the focus is solely on console pricing. With components largely sourced from overseas, the company is dealing with higher import duties due to recent U.S. trade policies.

The video game industry is experiencing a series of price increases this year, largely attributed to similar tariff pressures faced by competitors like Sony and Nintendo. Many consumers are expressing frustration online, with some vowing to wait for next-gen consoles that may arrive in 2026.

Analysts suggest that the continued price adjustments may indicate a shift in Microsoft’s strategy toward focusing on cloud gaming services, such as its Xbox Game Pass. The current economic climate and supply chain disruptions, including semiconductor shortages from the pandemic, are also contributing factors.

With Black Friday sales approaching, Microsoft’s soaring console prices present a challenging landscape for gamers looking for budget-friendly options in an increasingly competitive market. Microsoft’s stance on future pricing remains unclear, leading to speculation about the long-term implications for gaming hardware.