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:
- UK: Xbox Series X at £499.99 (up £20), Series S at £299.99 (up £50).
- Europe: Xbox Series X at €599.99 (up €50), 2TB model at €699.99 (up €50).
- Australia: Series S at $549, Series X at $849.
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:
- U.S. Tariffs: New tariffs under the Trump administration, reaching up to 145% on Chinese-manufactured goods, have hit Xbox consoles hard. Most Xbox hardware is produced in China, making tariffs a significant cost driver.
- Rising Production Costs: Inflation and supply chain issues continue to impact the gaming industry, with hardware and development costs soaring.
- Market Trends: Competitors like Sony have also raised PlayStation 5 prices, and Nintendo’s Switch 2 launched at a higher price point, reflecting a broader industry shift.
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
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Why did Microsoft increase Xbox Series X prices?
Microsoft cited “market conditions,” including new U.S. tariffs on Chinese-made goods, rising production costs, and inflation as key reasons for the price hike.
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How much has the Xbox Series X price increased?
The Xbox Series X now costs $599.99 in the U.S., up from $499.99—a 20% increase. The 2TB Special Edition is $729.99, and the Series S starts at $379.99.
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Are Xbox games also getting more expensive?
Yes, some first-party Xbox games will launch at $79.99 starting this holiday season, up from $69.99. These titles will support Xbox Play Anywhere for cross-platform play on Xbox and PC.
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Can I still buy an Xbox Series X at the old price?
Some retailers may have limited stock at the original price, but availability is dwindling. Check major retailers like Amazon or Walmart for remaining deals.
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How does this compare to PlayStation 5 price changes?
Sony has also raised PS5 prices in several markets, with the digital edition in the UK increasing from £360 to £429.99 since 2020, reflecting similar industry pressures.
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Is Xbox Game Pass still worth it after the price hike?
Yes, Xbox Game Pass continues to offer value with new releases and updates like Far Cry 4’s 60 FPS patch, making it a cost-effective alternative to buying games outright.