Xbox has announced it will be increasing the price of its hardware and some upcoming first-party games. This decision comes amid industry-wide discussions about the rising costs of game development and hardware manufacturing challenges.
The company confirmed it would be making Xbox Series X|S consoles and accessories more expensive in the U.S., Canada, UK and mainland Europe due to “market conditions and the rising cost of development”. This marks the first major price adjustment for the current generation Xbox consoles since their initial release.
Going foward, an Xbox Series X will retail for $599.99, while an Xbox Series S 1TB will cost $379.99 in the U.S. – up from $499.99 and $299.99, respectively. These increases represent a substantial price hike for both console models, which have maintained consistent pricing since their launch.
Meanwhile, Microsoft’s most expensive offering, the Xbox Series X 2TB Galaxy Special Edition, is now priced at $729.99 in place of the previous $599.99 price tag, with the Core and Color Xbox Wireless Controllers now set to cost $64.99 and $69.99, respectively. The premium Galaxy edition, featuring unique aesthetics and expanded storage, has seen the most significant price increase in the lineup.
“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” Microsoft said in a statement given to IGN. The company’s acknowledgment reflects awareness of potential consumer reaction to the announcement.
“Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.” This statement suggests Microsoft aims to emphasize its ecosystem approach as justification for the price adjustments.
As well as its hardware, Xbox confirmed some of its future first-party titles will now retail for $80 starting this Christmas – a $10 increase from the studio’s launch prices for games like ‘Call of Duty: Black Ops 6’ and ‘Indiana Jones and the Great Circle’. This price point now aligns Xbox’s premium titles with competitors who had previously moved to higher price tiers.
“We will adjust the pricing of some of our new first-party games starting this holiday season to $79.99,” Microsoft said. “This update will apply to physical and digital versions. That said, different games and expansions will continue to be offered at a variety of price points.” The clarification about variable pricing suggests Microsoft will maintain different pricing based on game scope and development investment.
The announcement has drawn mixed reactions from the gaming community, with many expressing frustration about the timing given current economic pressures. Industry observers note that while price adjustments were anticipated eventually, the comprehensive nature of these changes across hardware and software is significant.
Microsoft‘s decision follows similar moves from competitors in the gaming space, with many publishers having already transitioned to higher price points for premium titles. The hardware increases, however, position Xbox consoles at a higher entry point than their direct competitors for the first time this generation.
The company has emphasized that services like Xbox Game Pass will continue to provide value, though subscription pricing was not addressed in the announcement. Game Pass has been positioned as Xbox’s alternative that provides access to hundreds of games, including day-one releases of first-party titles.
European pricing details vary by country, with adjustments applied across different markets to account for currency fluctuations and regional economic factors. In the UK, the pricing changes follow similar patterns to those seen in North American markets.
The timing of the announcement, coming before the busy holiday shopping season, suggests Microsoft aims to establish these new price points ahead of major retail events like Black Friday and holiday promotions. This may impact Xbox‘s position during a crucial sales period.
Despite the price increases, Microsoft continues to invest in its gaming division, with recent studio acquisitions and technology partnerships aimed at expanding its content portfolio. The company maintains that these adjustments are necessary to support ongoing investment in game development and hardware innovation.
Gaming industry analysts suggest these price adjustments reflect broader economic factors affecting technology manufacturing and development, including component costs, inflation, and the growing investment required to create modern game experiences.
