Microsoft has announced a significant price increase for its Xbox Series X, Series S, and select accessories, sparking widespread discussion among gamers. Amid rising production costs and new U.S. tariffs, the price hike has raised concerns about affordability in the gaming industry. In this article, we’ll break down the new pricing, explore the reasons behind the increase, and answer frequently asked questions to help you navigate this change. Xbox Series X and Series S New Prices: A Breakdown The Xbox Series X, originally priced at $499.99, now costs $599.99 in the U.S., a 20% increase. The Xbox Series X Digital Edition has risen from $449.99 to $549.99, and the 2TB Galaxy Black Special Edition is now $729.99, up from $599.99. The Xbox Series S (512GB) has jumped from $299.99 to $379.99, a 27% hike, while the 1TB model is now $429.99. Globally, prices have also increased: Microsoft has also raised prices for controllers and headsets in select markets, and some first-party games will now launch at $79.99, up from $69.99, starting this holiday season. Why the Price Increase? Tariffs and Market Challenges The price hike stems from multiple factors: Microsoft’s hardware sales have struggled this generation, with a reported 6% year-over-year decline in hardware revenue for Q1 2025. This price increase may further challenge Xbox’s market position against the PlayStation 5, which has sold an estimated 30 million units since 2020. What This Means for Gamers The price hike comes at a tough time for Xbox fans. Microsoft has scaled back console sales in smaller markets, focusing on regions with higher demand. However, services like Xbox Game Pass remain a strong value proposition, with recent additions like Far Cry 4 (now 60 FPS on Series X|S) and Clair Obscur: Expedition 33. Gamers can also find deals, such as a 2TB Seagate Xbox Expansion Card at 39% off or Assassin’s Creed Shadows for $54.99 at Woot. FAQs About the Xbox Series X Price Hike