Microsoft Raises Xbox And Game Prices, Citing Rising Costs

Microsoft Corp. is raising prices on its Xbox games, consoles and accessories amid broader uncertainty about how the ongoing trade war will impact supply chains and the gaming industry.

The company's Xbox Series S 512GB console will cost $380, an increase of $80. The more powerful Series X console will sell for $600, a jump of $100. Controller and headset prices are also increasing. The price increases are global and come two weeks after rival Sony Group Corp. hiked pricing for its PlayStation 5 across Europe, Australia and New Zealand, citing inflation and a tough economic environment.

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

Microsoft's gaming strategy revolves around building up its Game Pass subscription service, offered across its consoles, PC and smart TV platforms. It allows users to download and play a collection of free games each month. But it also sells standalone games, most notably the Call of Duty series. This holiday season, Xbox will adjust some of its first-party game prices from $70 to $80, matching what Nintendo Co. is doing with flagship titles for the Switch 2 console.

The US company didn't say if the price hikes were the direct result of tariffs. But over the years, Xbox has relied on overseas manufacturing, including operations in China. During its quarterly earnings call Wednesday, Microsoft said that tariff uncertainty had led to higher-than-usual inventory among computer makers.

The recommended price changes for local retailers will begin immediately.

Microsoft shares rose 7.6% in New York on Thursday after the company reported stronger-than-expected revenue growth from its key Azure cloud unit.