Microsoft raises Xbox prices worldwide amid rising costs and tariffs

Microsoft has announced significant global price increases for its Xbox consoles, accessories, and first-party games, effective from May 1, 2025.

The company attributes the changes to rising development costs, economic pressures, and newly imposed U.S. tariffs on Chinese imports.

In the U.S., the price of the Xbox Series S has jumped by $80 (Sh10,340) to $379.99 (Sh49,113.71), while the more powerful Xbox Series X now costs $599.99 (Sh77,548), an increase of $100 (Sh12,925)

A special edition 2TB Xbox Series X, dubbed the Galaxy Special Edition, is priced at $729.99 (Sh94,351)

Prices for accessories such as controllers and headsets have also gone up.

First-party Xbox games are also getting more expensive.

Starting with this year’s holiday season releases, new titles will be priced at $79.99 (Sh10,338), up from the current standard of $69.99 (Sh9,046).

Microsoft says this increase reflects the growing complexity and production costs of modern AAA games.

These changes come amid wider economic pressures and shifts in global trade policy.

Recent tariffs imposed by the United States on Chinese electronics, some as high as 145%, have significantly raised manufacturing and import costs.

Microsoft has indicated that these tariffs have played a major role in its decision to adjust pricing.

The move mirrors a broader industry trend. Sony has raised the prices of its PlayStation 5 in several markets, citing inflation and exchange rate volatility.

Meanwhile, Nintendo is expected to launch its next-generation console, the Switch 2, at a higher price point than its predecessor.

Microsoft’s price increases reflect the financial realities of an industry grappling with inflation, increased production costs, and shifting global trade dynamics.