Microsoft shocks gamers with steep price hikes on Xbox Series consoles, controllers, and headsets, effective May 1. The company also confirms first-party games will cost $80 starting this holiday season. Xbox Series X price now retails at $599.99, up $100 from $499.99. The Xbox Series S (512GB) jumps $80 to $379.99, while the 1TB model hits $429.99. The premium Xbox Series X 2TB Galaxy Special Edition soars to $729.99, surpassing Sony’s PS5 Pro at $699. Gamers express outrage on platforms like Reddit, with some calling the increases “absolutely crazy.”
Xbox Series X price hike relates to rising development costs
Microsoft attributes the hikes to “market conditions” and rising development costs. The company acknowledges the changes challenge fans but emphasizes its focus on value. Xbox Play Anywhere allows $80 game purchases to work on both console and PC, a small consolation. Potential $80 titles include Call of Duty 2025, Fable, Perfect Dark, and Gears of War: E-Day, set for reveal at Xbox Games Showcase 2025 in June. Existing games avoid price changes, and smaller titles may cost less.
In the U.S., Xbox Series X Digital rises to $549.99, while controllers now range from $64.99 to $89.99. The Xbox Elite Wireless Controller Series 2 climbs to $199.99. Headset prices increase only in the U.S. and Canada, with the Xbox Wireless Headset at $119.99. Europe sees smaller hikes, with Xbox Series X up €50 to €599.99 and Series S at €349.99. In the UK, Series X increases £20 to £499.99, but Series S jumps £50.
The move follows Nintendo’s $80 pricing for Mario Kart World and Sony’s recent PS5 price bumps in select regions. Industry analysts link the hikes to 125%-145% tariffs on China, impacting Xbox production. Sony’s PS5 Slim at $449.99 now undercuts Xbox, intensifying competition. Microsoft’s Game Pass revenue grew 45% year-over-year, but hardware sales dropped 6%, prompting tighter margins. Gamers fear Sony may follow suit, with tariffs threatening broader industry increases.
It is stated that Xbox Game Pass will bid farewell to a total of 6 games on April 15. So which games will be leaving the platform?
Fans on X slam the hikes, urging creators to “spam DROP THE PRICE” at Microsoft events. Microsoft’s bold strategy risks alienating loyalists as holiday shopping nears. Will gamers pay up or switch platforms? The Xbox community braces for a costly future.
