Microsoft hikes prices of Xbox consoles, controllers, headsets, and games worldwide - cites market conditions and price of development

Microsoft on Thursday announced price hikes for its latest Xbox Series S and Series X consoles, their controllers, headsets, and even first-party games amid "market conditions" and rising development costs. As a result, an Xbox Series X console now costs $599.99/€599.99, the base controller is priced at $64.99/€64.99, and a first party game launched this holiday will carry a price tag of $79.99. Xbox Game Pass is not seeing an increase. 

"As of May 1, we have adjusted recommended retailer pricing for our consoles and controllers worldwide. We also expect to adjust the pricing of some of our new, first-party games [which could be played both on Xbox and PC] starting this holiday season to $79.99," a statement by Microsoft reads.

The Xbox Series X with 1TB of storage now costs $599.99, an increase of $100. The more premium Xbox Series X with a 2TB SSD and in Galaxy Black color is now listed at $729.99, up $130 from its original price. The Xbox Series X without an Ultra HD Blu-ray drive also got a $100 hike and is now priced at $549.99. The 512GB Xbox Series S is raised by $80 to $379.99, while the 1TB version is priced at $429.99.

Accessories are also now more expensive. The base wireless controller is now $64.99, and the wireless headset has moved up to $119.99. Select upcoming first-party game titles will be priced at $79.99 during the holiday season, an increase of $10 over most previous releases and in-line with Nintendo's pricing for Mario Kart World. 

These price changes affect not only the U.S., where newly imposed import tariffs are set to affect prices, but also Australia, Europe, the U.K. and other countries. Microsoft cites increasing development costs as well as ongoing trade policy uncertainties for its price raises.

"We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players."

Despite these price increases, Xbox Game Pass subscription pricing will remain unchanged for the time being, perhaps, because Microsoft previously raised console and subscription prices in mid-2024, less than a year ago. Before that, it slightly adjusted subscription prices in June, 2023.

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