Microsoft announced on Friday that it is raising the prices of its Xbox gaming consoles in the U.S. for the second time this year. The company’s video game division is facing cost pressures from tariffs, strong competition, and uncertain consumer spending.
The price increases, which Microsoft attributes to “changes in the macroeconomic environment,” will apply to its current generation of hardware. Starting October 1, the one-terabyte Series S will cost around $450, and the high-end Series X will be priced at around $650. The special edition two-terabyte Galaxy Black Series X will now retail for nearly $800.
Xbox had previously raised console prices in May in several markets, including the U.S., Europe, Australia, and the UK. Joost van Dreunen, a games professor at NYU Stern School of Business, stated that “this price increase is less about opportunism or even the cost of software development. Instead, it is the result of tariff increases and rising costs in the supply chain. Hardware is being repriced to absorb new trade pressures.”
The price hikes come after Xbox’s rival, Sony, also raised the prices of its PlayStation 5 consoles in the U.S. by about $50 last month. Sony’s most expensive PS5 Pro retails for $749.99.
