Microsoft hikes Xbox prices globally amid Trump's tariff wars and rising costs

The 27% price hike come as US tariffs fuel uncertainty across gaming industry


News Desk May 02, 2025
Xbox gaming controllers sit on a display shelf at Microsoft's new Oxford Circus store ahead of its opening in London, Britain July 9, 2019. PHOTO:REUTERS

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Microsoft has announced a significant global price increase for its Xbox consoles, citing "market conditions" and rising development costs.

The hikes come as US tariffs on Chinese-made electronics fuel uncertainty across the gaming industry.

The Xbox Series S will now cost £299.99 in the UK, up £50, while in the US., the console will jump from $299.99 to $379.99—a 27% increase.

The premium Xbox Series X Galaxy Black will rise from $599.99 to $729.99, a 22% hike. European markets will also see the Series S rise by €80 to €349.99, while in Australia, the console will now retail at $549 AUD.

Microsoft said in a statement, “These changes are challenging and were made with careful consideration given market conditions and the rising cost of development.”

Although the company didn’t directly attribute the increases to tariffs, industry experts point to escalating trade tensions and high US import duties—up to 145% on some Chinese goods—as key contributing factors.

In addition to hardware, Microsoft plans to raise prices for certain new first-party games to $79.99, matching the upcoming cost of Nintendo's Mario Kart World.

Unlike Nintendo, Microsoft stated the price will be consistent across physical and digital formats.

Gaming analysts warn that the price hikes could hurt Microsoft’s console sales, already trailing behind competitors.

Developers and commentators also suggest these increases may mark a broader shift in the industry, where production costs continue to rise but user growth remains stagnant.

Sony recently implemented price increases for PlayStation 5 consoles in multiple regions, and Nintendo has delayed pre-orders for the Switch 2, citing manufacturing uncertainty amid trade policy changes.

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