Microsoft Raises Prices on Xbox Consoles, Controllers, and Games Globally

Microsoft is raising the prices on its Xbox consoles, controllers, and certain new Xbox games globally. According to Tom Warren, a senior editor with extensive coverage of Microsoft and technology, these changes reflect a broader strategy to address market conditions and maintain competitive positioning. Effective immediately, Microsoft has adjusted its recommended retail prices for both the Xbox Series S and Series X consoles across various markets. The Xbox Series S (512GB) model will now cost $379.99, up from $299.99, representing an increase of $80. The Xbox Series X (1TB) will see its price rise from $499.99 to $599.99, a $100 increase. The 1TB variant of the Xbox Series S will be priced at $429.99, and the Digital Edition of the Xbox Series X will now cost $549.99. Additionally, the 2TB Galaxy Black Special Edition model will be priced at an unprecedented $729.99, a significant jump from its previous price point. Xbox wireless controllers and headsets are also seeing price adjustments. In the U.S., the base controller will now retail for $64.99, up from its original price, and the Xbox wireless headset will increase to $119.99. These new prices are already in effect for many retailers. Some new first-party Xbox games will also be more expensive this holiday season, moving from $69.99 to $79.99. This aligns with the pricing strategies of rivals like Nintendo, which has set its top Switch 2 launch titles at similar price points. However, Microsoft’s Xbox Game Pass subscription service will remain unchanged, continuing to offer users a consistent value proposition. These price hikes will affect not only the U.S. but also European markets, including the UK, as well as Australia. In Europe and the UK, the Xbox Series S (512GB) will now be priced at €349.99 / £299.99, and the Xbox Series X (1TB) will rise to €599.99 / £499.99. Sony recently implemented similar price increases for its PS5 consoles in Europe and the UK, indicating a trend within the industry to recalibrate pricing amid rising costs and changing consumer behavior. The timing of these increases follows Microsoft's strong performance in the gaming market. In the company's Q3 fiscal earnings call, CEO Satya Nadella announced that Microsoft had ended the quarter as the top publisher by preorders and preinstalls on both the Xbox and PlayStation Stores. The company also reported a 45 percent year-over-year increase in PC Game Pass revenue, underscoring the growing popularity of its game subscription services despite previous price hikes. These strategic moves by Microsoft aim to fortify its position in the highly competitive gaming industry, where maintaining financial sustainability and investing in future developments are paramount. By aligning its pricing with market trends and competitor actions, Microsoft hopes to sustain its momentum and continue delivering high-quality gaming experiences.