Microsoft has announced another price increase for its Xbox consoles in the United States. This is the second hike this year.
The company cited “changes in the macroeconomic environment” as the reason for the increase. Tariffs, supply chain pressures, and competition have contributed to higher costs.
The new prices will take effect on October 3. The one-terabyte Series S will cost around $450, while the high-end Series X will retail for $650. The special edition two-terabyte Galaxy Black Series X will reach nearly $800.
Earlier in May, Microsoft raised console prices in several markets, including the US, Europe, Australia, and the UK. The previous increase was linked to tariffs on imports from China, which raised production costs and squeezed profit margins.
Analysts note that the Xbox Series X has seen a $150 price increase in just six months. Experts warn this may affect consumer spending, especially with rising inflation. Joost van Dreunen, a games professor at NYU Stern School of Business, said, “The price increase reflects tariffs and supply chain pressures, not opportunism or software costs.”
Competitors are also adjusting prices. Sony raised the cost of PlayStation 5 consoles in the US by around $50 last month. Its high-end PS5 Pro now retails for $749.99.
Microsoft clarified that prices for controllers, headsets, and consoles in other markets remain unchanged. While new games and hardware launches were expected to boost growth, delays and price hikes may affect industry outlook.
Gamers are encouraged to plan purchases carefully. Rising console prices highlight how tariffs and global economic conditions continue to impact the gaming industry.
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