The Xbox Series S will now retail for £299.99 in the UK — a £50 jump — while the United States has seen the Xbox Series X increase by $100 to $130 depending on the model. Similar hikes are being implemented globally, including an €80 rise in parts of Europe and a $50 jump in Australia.
The company acknowledged the impact on consumers in a blog post, stating:
“We understand that these changes are challenging. They were made with careful consideration given market conditions and the rising cost of development.”
While Microsoft stopped short of explicitly linking the increase to the recent U.S. tariffs on electronics, analysts and industry insiders say those trade measures — part of broader economic tensions with China — likely influenced the decision.
Industry Response: “Gamers Will Suffer Most”
Industry figures have voiced concern about the broader implications. Kedhrin Gonzalez, founder of Rip & Tear Studios, called the price hike “inevitable,” describing it as a consequence of tariff disruptions and a warning sign for consumers.
“Gamers will suffer most, with little hope of prices decreasing,” Gonzalez said. “This could significantly impact Microsoft’s already modest Xbox sales and potentially trigger broader industry repercussions.”
Gaming analyst Christopher Dring also highlighted the role of global inflation, exchange rate volatility, and the rising cost of manufacturing.
“With accessories and components made in China, the connection is pretty obvious,” he said. “The console game sector has barely grown in terms of users in over 20 years, but costs of manufacturing and game development continue to rise exponentially. Any cost increases, even a small tariff, can have a serious impact on profitability.”
Prices Rise Across Consoles and Games
The latest Xbox price hikes follow a broader industry shift away from the historical norm of reducing console prices over time. Sony’s PlayStation 5 Digital Edition, for instance, launched at £360 in 2020 but has since climbed to £429.99.
Microsoft also signaled that some new, first-party Xbox games will be priced at $79.99 starting in 2025. This aligns with pricing for Nintendo’s upcoming Mario Kart World, though Microsoft confirmed that, unlike Nintendo, the digital and physical editions of its games will cost the same.
The company emphasized that the price increases will not affect existing game titles and only apply to select new releases.
However, it declined to confirm whether UK consumers should also expect price adjustments on upcoming games, saying:
“Local pricing may differ across countries and platforms.”
A Pivotal Moment for Console Gaming
The latest developments come as the console gaming sector faces mounting financial pressure. With limited user base growth and escalating production and development costs, companies are grappling with how to maintain profitability without alienating players.
Whether this price increase will impact Xbox’s competitiveness — especially against rivals like Sony and Nintendo — remains to be seen. But for now, it marks a turning point in how major players approach hardware and software pricing in a high-cost, high-stakes market.