Initially, many believed the recent price increase for the Xbox Series X/S in the US was due to import tariffs. But according to Mike Ybarra, a former president at Blizzard, Microsoft likely raised prices to increase profits from console sales.
Microsoft initially explained their price increases by pointing to economic changes in the country. Ybarra commented that one price increase due to tariffs is understandable, but further increases likely mean the company is trying to improve its profits.
According to industry analyst Michael Pachter, the recent price hikes for game consoles aren’t due to tariffs, but rather companies trying to increase their profits. He believes the underlying reason profits are lower than expected is a much more significant problem than simply blaming tariffs.
Ybarra pointed out that tariffs haven’t increased since they were first put in place. He explained in a post that using this as a reason to keep raising prices is a separate issue, and ultimately, consumers will be the ones who bear the cost.
Just to give you an update, Xbox Series X/S console prices are changing starting October 3rd, but this only affects customers in the US. Here’s the new pricing: the Xbox Series S with 512 GB will cost $399.99, and the 1 TB version will be $449.99. The digital version of the more powerful Xbox Series X will be available for $599.99, and the standard Xbox Series X with a disc drive will be $649.99. If you want the Xbox Series X with 2 TB of storage and a special Galaxy Black finish, that model will cost $799.99.
Xbox prices are changing. The Xbox Series S is increasing by $20 across both versions, but the biggest price increase is for the 2 TB Xbox Series X, which will now cost $70.
Microsoft isn’t the only company increasing the cost of its consoles. Sony announced price increases for all PS5 models in August. The standard PS5 now costs $549.99, the Digital Edition is $499.99, and the high-end PS5 Pro is priced at $749.99. This represents a $50 price increase across the board. Fortunately, the price of PS5 accessories will remain unchanged.
Nintendo increased the prices of all its Switch consoles in the US starting in August. The standard Switch now costs $339.99, a $40 increase. The Switch OLED model went up by $50 to $399.99, and the Switch Lite is now $229.99, a $30 increase.
The rising cost of game consoles isn’t due to tariffs – it’s about companies prioritizing profits. The real reason profits are down is much more complex than simply blaming tariffs.
— Mike Ybarra 😇 (@Qwik) September 19, 2025
That’s right. A previous tariff increase did explain one price hike. However, continuing to raise prices now, without any new tariff changes, is a separate issue, and customers will ultimately bear the cost of it.
— Mike Ybarra 😇 (@Qwik) September 20, 2025
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2025-09-23 14:41