Microsoft has been in the news recently for its price hikes for Xbox consoles and services. In the United States, Xbox Series X/S consoles have been increased for the second time since 2025. Xbox Game Pass subscription fees have also been increased, and an expensive Xbox handheld console produced in collaboration with ASUS has been released. A new report published by the global press reveals that these price increases aren’t just affecting end users. According to reports, game developers are now having to pay more for Xbox hardware.
Xbox price hikes don’t just hit gamers: Developers affected too
Sources speaking in the report claimed that the price of Xbox developer kits has increased by 33%. These specialized kits, used by developers to develop their games, have risen from $1,500 to $2,000. Microsoft explained the reason for this increase as similar to console price increases. The company attributed the increase to “macroeconomic developments.” However, unlike regional increases for consoles, this increase will apply globally to anyone who wants to purchase a developer kit.
It’s normal for developer kits to be significantly more expensive than the standard consoles gamers purchase. These kits are designed for testing unfinished and unoptimized versions of games. As a result, they include additional hardware and more power. They also offer developers different software options for pre-commercial release testing. Because developer kit prices are typically protected by confidentiality agreements with manufacturers like Sony, Microsoft, and Nintendo, these details aren’t readily available to the public.
Microsoft, on the other hand, technically allows standard Series X/S consoles to be converted into developer kits. Developers can activate this feature by adjusting settings and paying a fee to Microsoft. However, there are significant hardware limitations between a standard console and a professional developer kit. Therefore, using retail consoles isn’t seen as a viable solution for many developers to overcome this new price hike.
This price increase comes at a time when Microsoft is moving away from its perceived “best deal in gaming.” Console costs and premium subscription services have made Xbox the “most expensive option.” The video game industry, especially in the US, has been going through a difficult period over the past few years. This move, which increases the cost for developers to release games on the Xbox platform, could make the platform less attractive to studios already worried about profitability.
It appears that Microsoft’s new approach involves making the Xbox an expensive platform for both gamers and game developers. It’s also been reported that some of these price increases are due to tariffs implemented by the current US administration. So, what are your thoughts on this latest Microsoft price hike for game developers?
