Inflation, tariffs, costs: why Xbox prices are soaring worldwide

With the start of May 2025, the Xbox team brings an important update about new tariffs and prices. Let’s find out more about it!

Discover the new games coming to Xbox Game Pass in May 2025!

Xbox is Microsoft’s gaming division and brand. It first launched in 2001 with the official release of the original Xbox. The Xbox 360 era solidified Xbox as a major media brand for Microsoft. The Xbox Series X and S now represent the fourth and latest generation of consoles.

This generation officially launched on November 10, 2020, and has seen a significant increase in the adoption of Xbox Game Pass. Xbox Game Pass officially merged with Xbox Live Gold on September 14, 2023. Buy Xbox Game Pass and play top games like The Elder Scrolls IV: Oblivion Remastered and Clair Obscur: Expedition 33 at a great price!

Xbox and Tariffs: Microsoft Announces Price Increase for Games and Hardware

On May 1, 2025, the Xbox team released an important update regarding U.S. government tariffs. Specifically, Microsoft’s gaming division officially announced a price increase across much of Xbox’s services.

The increase primarily affects hardware produced in China and other countries hit hard by tariffs. But it also includes some Microsoft first-party game titles. Xbox says the price hikes are due to increased production costs, with a detailed list shared by The Game Business.

Xbox has raised prices on all consoles, some controllers and accessories worldwide, and certain first-party Xbox games will rise to $79.99 by the end of the year. US Xbox Series X price has gone up $100. Here are the new US prices. Read more at pic.twitter.com/zRvoojtb39

— The Game Business (@thegamebusiness) May 1, 2025

Xbox: Player Opinion and Concerns About Xbox Game Pass

The new price increase isn’t just limited to the United States but affects all regions. This significant price hike is expected to kick in around the holiday season. Xbox attributes the increase to rising production costs, but many consumers disagree.

The most common opinion is that Xbox is aligning its prices with Nintendo’s recent price increase. Nintendo raised the price of digital Switch games by $10 to over $70, following the announcement of the Switch 2. This move seems more about profit-seeking than genuine “development costs.” The biggest fear now is seeing an increase in Xbox Game Pass prices, following Sony’s price hike for PlayStation Plus in many regions.

Official Xbox Pricing Announcement on Microsoft’s Blog

Conclusion

This news has certainly upset consumers, with tariffs being used mainly as an excuse for a price increase. This comes despite a thriving video game industry that continues to grow in profits. What do you think about the situation? Let us know in the comments!

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