Microsoft announced on Friday it is increasing the cost of its Xbox video game consoles in the U.S. for the second time this year, as the cloud behemoth’s gaming business struggles to contend with tariff-related cost burdens, stiff competition and uncertain consumer outlays.
The price hikes, which Microsoft blames on “changes in the macroeconomic environment,” will be imposed on its current generation of equipment, with the one-terabyte Series S retailing for about $450 and the premium Series X for about $650 when the changes take effect on October 3.
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The limited edition two-terabyte Galaxy Black Series X will now cost almost $800.
Xbox already increased console prices in May in a number of markets such as the United States, Europe, Australia and the UK, since U.S. President Donald Trump’s tariffs on imported merchandise from production centers like China have the potential to increase the price of hardware and shrink margins.
Combined with the May hikes, the Xbox Series X has experienced a $150 increase in six months, which could encourage players to rein in budgets with increased levels of inflation.
“These price hikes are more about tariff hikes and increasing supply chain costs rather than opportunism or even the expense of game development. Hardware is being repriced to absorb new trade pressure,” explained Joost van Dreunen, a professor of games at NYU Stern School of Business.
Xbox competitor Sony also increased the cost of its PlayStation 5 consoles in the United States by about $50 last month. Sony’s priciest PS5 Pro costs $749.99.
Xbox prices rise once again 2025
Prices for headsets, controllers and consoles elsewhere will not be affected, Microsoft added.
Consoles were set to be the largest source of growth in the video game market this year, as a result of the release of new premium games like “Grand Theft Auto VI,” and hardware like Nintendo’s Switch 2.
