Xbox and Microsoft reveal global price increases for consoles, accessories — and even games

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Currently, the global economy is experiencing an unusual state due to multiple factors. Inflation caused by the pandemic has persisted in most developed countries, creating a challenging situation. Additionally, ongoing disruptions in supply chains due to geopolitical tensions are causing havoc. Furthermore, escalating tariff wars pose a risk of disrupting the relatively affordable electronics prices we’ve grown accustomed to over the last few decades.

In the face of these three significant challenges, we’re observing a gradual reaction from different companies. Prices for PC gaming handhelds such as Lenovo Legion Go, manufactured in China, have been rising, and some manufacturers like 8bitdo have ceased their operations in the United States. However, let’s discuss the status of our beloved gaming consoles.

For a few years now, PlayStation has raised the cost of its console hardware, making it somewhat pricier than an equivalent Xbox. Similarly, the anticipated Nintendo Switch 2 is facing criticism due to its $449.99 price point. Interestingly, when Sony boosted the PS5’s price, Microsoft stated they wouldn’t follow suit. However, recent economic changes have led us into a new financial landscape.

According to our trusted resources and backed up by a statement from Microsoft today, it appears that the company will be raising the prices for their Xbox consoles, accessories, and games later this year, during the holiday season. The gaming industry is currently dealing with escalating costs.

Here are all the May 2025 Xbox price increases

The latest price adjustments encompass hardware, add-ons, and holiday season games too. However, it’s important to note that Xbox Game Pass subscription fees remain unchanged at this point.

In regions not mentioned earlier, prices will undeniably rise, with fluctuations depending on the currency and specific retailer. By the end of the year, games may reach a peak of $80, but Microsoft sources have assured me that pricing will still be determined by the game’s scale, similar to today. For instance, smaller games might fall under the $50 price point, whereas large-scale AAA titles such as the latest Call of Duty are likely to hit the maximum price bracket.

It appears that the increased price set by Nintendo and Microsoft’s anticipation of GTA 6 costing around $80 are the main factors influencing this decision. Upcoming Xbox games like DOOM: The Dark Ages will be exempt from the price hike, but any upcoming releases for Xbox in the fall are expected to follow suit. It’s likely that other third-party publishers will do the same, possibly very soon.

When is expensive too expensive?

Over the past year, Xbox’s approach has been evolving rapidly, causing some uncertainty among core Xbox users and making others feel excluded. Recently, Microsoft announced it will no longer focus on creating games exclusive to its console line, a shift that contradicts their previous court statement which allowed PlayStation to sell exclusives like Final Fantasy 7 Remake and Death Stranding, initially unavailable for Xbox customers due to timed exclusivity deals.

Xbox has been confronted with queries like “what’s the point of having an Xbox?” given that blockbuster titles such as Forza Horizon 5 are now playable on PS5, and there’s no indication that Sony will return the favor by releasing its games on Xbox. Until recently, one could justify ownership based on hardware value, but this argument is invalid now.

Microsoft is confident that features such as Xbox Play Anywhere, streaming games through Xbox cloud, and the extra benefits offered by Xbox Game Pass will enable it to stay competitive in the market. Personally, these offerings have kept me engaged. Notably, when Xbox first-party games are priced at $80, they come with a PC code as well due to Xbox Play Anywhere (XPA), which is typically a value that could cost up to $160 from other publishers.

To put it simply, the broader gaming community has shown little interest in features such as Xbox Play Anywhere so far, and many may not even be aware that it exists. However, let’s imagine a scenario where hardware is developed from scratch to fully support Xbox Play Anywhere.

Microsoft aspires to triumph in hardware sector with innovative next-generation technology, encompassing not just an upgraded version of Xbox Series X but also potentially a portable Xbox device. Additionally, Microsoft is collaborating with international hardware partners to develop alternative Xbox consoles. This move will aid them in catering to customers in regions and countries that face severe trade limitations on hardware imports.

It’s yet unclear if these plans, which are mostly theoretical at the moment, will benefit Xbox in the long run. Xbox hardware has been struggling for quite some time now, but Microsoft’s recent Q3 earnings in the gaming sector showed a positive trend, hinting that their approach might be successful from a business standpoint.

Has the cost of the gaming industry risen excessively? Could less expensive, budget-friendly games such as Expedition 33 be the way forward? Will Xbox ultimately transition entirely to third-party publishing? Join the discussion in the comments below.

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2025-05-01 16:09