Microsoft is set to increase prices for its Xbox games, consoles, and accessories due to ongoing uncertainties in supply chains amid a global trade war that is affecting the gaming sector.
The Xbox Series S 512GB console will see a price rise to $380 (approximately Rs. 32,000), marking an increase of $80 (around Rs. 6,743). Meanwhile, the more advanced Series X console will now retail for $600 (roughly Rs. 50,577), up by $100 (approximately Rs. 8,430). Prices for controllers and headsets are also expected to rise. This adjustment in pricing is global and follows Sony Group’s recent decision to increase the price of its PlayStation 5 in Europe, Australia, and New Zealand, driven by economic pressures and inflation.
In a blog post, Xbox acknowledged the challenges posed by these changes, stating, “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.”
Microsoft’s gaming strategy largely hinges on its Game Pass subscription service, accessible on consoles, PCs, and smart TVs. This service provides subscribers with the option to download and enjoy a variety of free games each month, while also offering standalone titles, including the popular Call of Duty series. For the upcoming holiday season, Xbox plans to raise prices for some first-party games from $70 (approximately Rs. 5,900) to $80 (around Rs. 6,743), aligning with Nintendo’s pricing for flagship titles on the Switch 2 console.
While Microsoft did not explicitly link these price increases to tariffs, the company has traditionally depended on overseas manufacturing, particularly operations based in China. During a quarterly earnings call held on Wednesday, Microsoft acknowledged that uncertainties surrounding tariffs have contributed to higher inventory levels among computer manufacturers.
The recommended price adjustments will take effect immediately for local retailers.
On Thursday, after announcing stronger-than-expected revenue growth from its Azure cloud unit, shares of Microsoft rose by 7.6 percent in New York.
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