Microsoft announces second Xbox price hike this year

Microsoft will increase Xbox Series console prices in the United States starting October 3, marking the second price hike this year as the company blames "changes in the macroeconomic environment" — widely interpreted as impacts from tariffs on imported goods.The Xbox Series X will jump $50 to $649.99, while the entry-level Xbox Series S increases $20 to $399.99. The premium 2TB Galaxy Black Special Edition faces the steepest increase at $70, bringing its price to $799.99. Digital versions of the consoles will also see price bumps ranging from $20 to $50.These latest increases compound May's price hikes, resulting in dramatic cumulative increases over six months. The standard Xbox Series X has risen $150 from its original $499.99 launch price, while the Galaxy Black Special Edition has jumped $200 in just one year since its debut.The timing follows similar moves by competitors Sony and Nintendo, who raised PlayStation 5 and Switch console prices respectively in recent months. Industry analysts point to President Trump's tariffs on goods manufactured in China, Vietnam, and India as the primary driver behind these widespread price increases across gaming hardware.Microsoft's price adjustments now position some Xbox models unfavorably against competitors.

The $599.99 Xbox Series X Digital costs $50 more than Sony's PS5 Digital Edition, while the $799.99 Galaxy Special Edition exceeds the price of Sony's new PS5 Pro at $749.99, despite offering less performance.The company emphasized that controller and headset pricing will remain unchanged, and international markets won't see price adjustments. However, Xbox pricing outside the US had already increased in previous rounds of global price hikes.Consumers looking to avoid the increases have until October 3 to purchase consoles at current prices from retailers including Amazon, Best Buy, and Walmart. With ongoing economic uncertainties and potential for additional tariff impacts, industry experts suggest this may not be the final price adjustment for gaming hardware this year.