Starting today, Microsoft is adjusting the recommended retail prices for Xbox hardware and accessories globally. New first-party games are set to retail for $79.99 this holiday season. The company cited “careful consideration given market conditions and the rising cost of development” in their announcement.
In the United States, the Xbox Series X with a disc drive will now be priced at $599.99, an increase from its previous price of $499.99. The Digital version will see a jump to $549.99, up from $449.99. On the more affordable side, the 1 TB Xbox Series S will now retail for $429.99, previously $349.99, while the 512GB model will rise to $379.99 from $299.99.
These new prices are now live on Microsoft’s online store, and the company plans to provide updated pricing information to local retailers. There may be a brief opportunity for consumers to purchase hardware and accessories at the older prices while supplies last.
Regarding headsets, Microsoft mentioned that pricing adjustments will be applicable only in the US and Canada, potentially acknowledging the impact of tariffs on imported foreign goods. The company also indicated that “Xbox Series S and X availability may continue to change over time depending on the retailer and by country” due to the unpredictable nature of international trade.
On the software side, the new $79.99 price point will be implemented for “some” new games this holiday season, affecting both digital and physical versions. However, existing Xbox games will not experience a price hike, and various games and expansions will continue to be available at different price points.
A New Pricing Era
This announcement signifies the first increase in recommended pricing for Xbox gaming hardware in the United States’s history. This contrasts sharply with the Xbox One era, where significant price drops were applied just three years after launch due to sluggish sales.
While Sony raised the price of the PlayStation 5 in various international markets back in 2022, the United States was not affected, maintaining its status as the largest market for game console sales. With this new pricing, the Xbox Series X has now surpassed the PS5 in cost, as the latter is available for $449.99 in a “slim” bundle containing Astro Bot.
Microsoft’s decision to set first-party software at $80 follows closely on Nintendo’s recent announcement of the same pricing for the forthcoming Switch 2 launch title, Mario Kart World. This comes in the context of the $70 price becoming a standard for high-budget games in recent years. Despite initial sticker shock, this new price level aligns broadly with inflation-adjusted pricing trends over the past few decades.
The increase in hardware prices may also reflect the heightened inflation observed since the Xbox Series line’s launch in 2020. The initial price of $499.99 for the Xbox Series X in November 2020 is equivalent to approximately $615 in March 2025 dollars, according to the Bureau of Labor Statistics’ Consumer Price Index inflation calculator.
