Tariffs bite Xbox fans even harder, as Microsoft (again) increases Xbox Series X|S prices in the US — here’s how much more you’ll pay

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Things are getting more expensive for Americans, as companies are raising prices to cover the cost of tariffs.

The U.S. government has recently imposed tariffs on various countries, hoping to encourage more manufacturing within the United States. However, due to a current shortage of skilled workers and educational resources, companies will likely continue to rely on countries like China, Vietnam, and India – those affected by the tariffs – for production, at least for the time being.

The Xbox Series X and Xbox Series S are no exception.

Tech companies like Microsoft are already raising prices on their products, especially those that rely heavily on parts from China. China’s tariffs on these components vary widely, from 10% to 40%, impacting the entire supply chain. Everything in a device like the Xbox Series X|S – from storage to chips and circuitry – is subject to these tariffs, forcing manufacturers to either increase prices, find new suppliers, or do both.

Microsoft is raising the price of the Xbox Series X and S consoles for the second time this year, citing existing tariffs as the reason.

Microsoft is raising the price of its Xbox Series X and S consoles starting October 3rd. They say this is because of the current economic situation. If you’ve been thinking about buying an Xbox, it’s best to do so before the price increase.

The price hikes are currently limited to the US, and it seems likely they’re due to tariffs. Controllers and headsets aren’t affected – at least not yet.

Product New Price (RRP) Previous Price (RRP)
Xbox Series S 512GB $399.99 $379.99
Xbox Series S 1TB $449.99 $429.99
Xbox Series X Digital $599.99 $549.99
Xbox Series X $649.99 $599.99
Xbox Series X 2TB Galaxy Black Special Edition $799.99 $729.99

A Microsoft spokesperson explained that the company is responding to a rapidly changing economic landscape. They’ve evaluated how these changes are affecting their business. Specifically, the ongoing trade tensions between the U.S. and China – where Xbox consoles are made – are constantly shifting, with varying tariffs applied to different console components. Recent tariff exemptions have ended, but new ones could be introduced at any time.

President Trump and Chinese Premier Xi Jinping are likely to meet soon, after a deal was reached to move TikTok’s U.S. operations to American companies like Oracle. This meeting could lead to a reduction in tariffs between the two countries. However, China has also restricted some U.S. technology, including AI chips from NVIDIA.

Microsoft admitted the recent changes have been difficult for users, but they also highlighted their ongoing efforts to expand access to Xbox games and content through other methods.

Starting October 3rd, we’re adjusting the suggested retail prices for the Series S and Series X consoles in the U.S. to reflect current economic conditions.

We know these changes might be difficult, and we didn’t make them lightly. Our goal is to keep bringing more games and ways to play to all your devices, and to make sure Xbox players get the most out of their experience.

Microsoft is encouraging game publishers to release their titles on Xbox PCs with the added benefit of Xbox Play Anywhere, but many major publishers aren’t currently on board. At the same time, Microsoft is actively adding games – even from other companies – directly to Xbox Cloud Gaming. This could become a popular choice for gamers who find the cost of new hardware increasing. Microsoft plans to improve the quality of cloud gaming streams and make it more affordable than the current $19.99 monthly price with Xbox Game Pass Ultimate.

The ongoing tariffs are definitely affecting the availability of the Xbox Series X|S consoles. I’ve also been told they’re the main reason Microsoft hasn’t announced the price of the new Xbox Ally handheld gaming PC yet. Since the Ally is being made with ASUS in Taiwan but likely manufactured in China, it will be subject to various import taxes depending on the parts used.

The Lenovo Legion Go 2, also manufactured in China, recently surfaced with a price tag reaching up to $1350 in the US, which surprised many potential buyers. People are hoping the Xbox Ally will be more affordable, as it appears to have a simpler build and benefits from Microsoft’s marketing power. However, with the launch just weeks away, the fact that there’s still no official price announcement is a bit concerning.

The first console generation where prices went up over time, instead of down

The Xbox Series X|S marks a first for video game consoles: prices have actually increased since the previous generation, rather than decreasing as they usually do. Considering traditional gaming is already facing competition from mobile games and games playable on older consoles, these higher prices will likely make it even harder to attract new players to the hobby.

Microsoft is trying to reach gamers on PCs and PlayStation, meeting them where they already play, which is helping to ease some challenges. I also predict Xbox Cloud Gaming will officially launch this year with increased marketing. This could be a great option for players who find the cost of buying a console too high.

Unless tariffs are lowered and trade is allowed to flow freely, prices are likely to continue increasing. Bringing Xbox console production-or any major electronics manufacturing-back to the United States is probably at least ten years away. This is due to a lack of necessary facilities and a shortage of skilled workers. We’d need significant investment in training programs to encourage people to pursue manufacturing careers, and financial incentives for companies willing to manufacture products domestically.

While there’s been a lot of discussion about bringing manufacturing back to the U.S., it will probably take a long time before we see any real change in prices. It’s still generally cheaper to make things overseas, and that’s unlikely to change quickly. In fact, I think the situation might even get more difficult before it improves.

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2025-09-19 22:11