Xbox deals devastating price rise to MILLIONS amid tariff uncertainty – as furious gamers call the new prices ‘outrageous’
It’s been nearly five years since they were released, but Microsoft is raising prices for its flagship Xbox consoles in the wake of US tariff plans.
Starting Thursday, the price of its base level Xbox Series S has gone up by £50 to £300, while the top-of-the-line Xbox Series X goes up by £20 to £500.
Some of the console rises in the US are also steeper than elsewhere, with the Xbox Series S going up by $80 to $380.
The more powerful Xbox Series X console will now retail for a staggering $600 in the US – an increase of $100.
Unsurprisingly, gamers have been left furious at the news, with some calling the new prices ‘outrageous’ and ‘stupid’.
One called it ‘the worst thing I’ve ever seen in my life’, adding: ‘Tarrifs and greed is why this happened.’
Someone else said: ‘Who the f*** raises the price to a five year old game console???!!!’
It follows gaming rival Sony’s announcement of similar price hikes for PlayStation consoles, while Nintendo confirmed accessories for its new Switch 2 will rise.
Microsoft said the rises, which also apply to a range of its wireless controllers, were made with ‘careful consideration’ given ‘market conditions and the rising cost of development’
Microsoft will increase Xbox console prices worldwide, not long after Sony made a similar move with its PlayStation 5. Pictured are the current generation consoles, Xbox Series X (left) and cheaper Series S (right)
Some of the console rises in the US are also steeper than elsewhere, with the Xbox Series X going up by $80 to $380
The price rise is due to US President Donald Trump’s move to impose tariffs on nations around the world which caused huge disruption to global manufacturing supply chains.
Microsoft announced the worldwide price increases, which also apply to a range of its wireless controllers, in a statement on the Xbox website, citing ‘market conditions’.
‘We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,’ it said.
‘Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.’
Although it did not specifically mention them, ‘market conditions’ has been widely interpreted as a reference to Trump’s tariffs, which add a charge on goods imported from other countries.
Xbox consoles – and Sony’s PlayStation consoles – are mainly manufactured in China, which faces 145 per cent US tariffs on numerous products under the Trump administration.
The trillion-dollar tech giant – which released its first Xbox back in 2001 – said it is providing the updated recommended pricing to local retailers worldwide.
This means gamers are not going to get an Xbox cheaper by going to a high street store instead of the official Xbox website.
Microsoft has a price breakdown on its website for different worldwide markets, including the UK (pictured). The cheapest Xbox Series S has gone up by £50 to £300, while the top-of-the-line Xbox Series X goes up by £20 to £500
In mid-April, Sony announced price increases for several PlayStation 5 models in select markets, including Europe but notably excluding the US – for now
Both the Xbox Series X and Series S were released in November 2020 to compete with Sony’s PlayStation 5
In addition, Microsoft confirmed it would also increase the US price for some of its new, first-party games at launch to $80, starting from ‘this holiday season’, up 14 percent from the current $70.
‘This update will apply to physical and digital versions,’ it said, adding: ‘Different games and expansions will continue to be offered at a variety of price points.’
Many gamers are so angry because Xbox Series X and Series S are not even new consoles, having been released back in November 2020. In the past, console prices tend to have gone down in the years after their launch, not up.
One commentator said: ‘The days of consoles decreasing in price over the course of a generation are clearly gone.’
Another fan called the move ‘stupid’ because it will price out new generations of gamers and ultimately slow sales.
‘Wanna price games out of ppls reach due to the economic climate? Sure thing,’ they said.
Microsoft also revealed that its quarterly profits up are up 18 per cent to $25.8 billion, beating industry expectations. It includes a 6 per cent increase in revenue in its personal computing unit, which includes its laptop business and Xbox services.
Gaming consoles are expected to be the biggest driver of growth for the video game industry this year, with Nintendo gearing up to launch its long-awaited Switch 2 in June.
One fan called the move ‘stupid’ because it will price out new generations of gamers and ultimately slow sales
The tech giant also plans to raise prices for some new games developed by its video game subsidiaries
An update on the original Switch released in 2017, Switch 2 will cost £395.99 on its own or £429.99 for a bundle that also includes Mario Kart.
Microsoft released its Xbox Series X and Series S consoles in November 2020, as joint successors to the Xbox One, which was released in 2013.
Together, they have sold approximately 30 million units, according to industry analysts’ estimates.
Microsoft said the Series X is the most powerful console it has ever made – featuring processing power twice that of the Xbox One X before it.
Both the Series X and Series S have backwards compatibility, which allows them to play games from older consoles.
Microsoft is rumoured to be working on a successor due in 2027 or 2028.
