Microsoft has confirmed it is raising the prices of its Xbox Series X and Series S gaming consoles in the United States for the second time this year, a move the company attributes to a challenging macroeconomic environment and persistent tariff-related cost pressures. The new prices will take effect on October 3, 2025.
This latest hike follows a similar increase in May and comes just one month after rival Sony raised the price of its PlayStation 5 consoles. For gamers, it means the cost of next-generation hardware continues to climb.
The New Xbox Prices (Effective October 3)
The price adjustments will apply to Microsoft's current-generation hardware in the U.S. market. The new retail prices will be:
Combined with the price increase in May, this marks a substantial $150 price hike for the standard Xbox Series X console in just six months, a significant jump for consumers already dealing with higher inflation. Microsoft stated that prices for controllers, headsets, and consoles in other global markets will not change at this time.
Why Are Xbox Prices Going Up Again?
While Microsoft's official statement points to broad "changes in the macroeconomic environment," the primary driver behind the increase is the impact of U.S. tariffs on imported goods from manufacturing hubs like China.
This assessment is supported by industry experts. "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," said Joost van Dreunen, a games professor at the NYU Stern School of Business. "Hardware is being repriced to absorb new trade pressures."
How This Compares to the Competition
Microsoft is not alone in raising prices. In a similar move last month, Sony increased the price of its PlayStation 5 consoles in the U.S. by approximately $50. The highest-tier model, the PS5 Pro, now retails for $749.99, placing it in a similar price bracket to the new special edition Xbox.
A Challenging Outlook for the Gaming Industry
The video game industry was expected to see major growth this year, fueled by the launch of new hardware like Nintendo's Switch 2 and blockbuster titles such as "Grand Theft Auto VI." However, these consistent hardware price hikes, combined with major game delays and uncertain consumer spending, have cast a shadow over the industry's near-term outlook.
