President Donald Trump's tariffs are starting to hit console gaming, as Microsoft is gearing up to raise the price of the Xbox, reported NBC News.
"On Thursday, the Microsoft-owned video game platform announced that it has adjusted recommended retail prices for Xbox consoles and controllers worldwide and is preparing to raise prices for some games as well," said the report.
In a statement, Microsoft said, “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.”
The Xbox Series X will go from $499 to $599, with the Series X Digital going to $549 and the Series X 2TB Galaxy Special edition going to $729, according to the report. Series S consoles are also seeing a price hike, and new Xbox games will go up to a standard price of $80.
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Even before Trump's tariffs, the Xbox was struggling compared to its primary competitors, the Nintendo Switch and the Sony PlayStation, with hardware revenue for the console plunging by 42 percent in the final quarter of 2024.
The news triggered a swift reaction from analysts.
"Microsoft just raised X box prices in the United States because of Trump tariffs," wrote former George W. Bush administration speechwriter David Frum. "Meanwhile, you can still get XBox at pre-Trump prices in Canada."
"Microsoft dramatically increasing prices on the Xbox is a puzzling decision. It's lagged badly behind the PS5 in sales. They should be cutting the price to boost sales," wrote political analyst Drew Savicki. "The tariffs are killing them but they're not exactly raking in the dough now either."
"PlayStation gamers are making fun of Xbox gamers about the Xbox price hikes without realizing the same thing will eventually happen with their favorite platform," wrote tech analyst Tony Polanco. "Fansboys will never learn!"
"$80 games are now officially a reality for Xbox," wrote the gaming analysis influencer "Synth Potato." "Nintendo is completely at fault, PlayStation is obviously next with this price hike and $80 is about to be the new standard. Depressing to see how much of a luxury gaming is becoming with the constant price hikes."