Xbox Made $21 Billion Last Year, But Needs You To Pay More For Games

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The costs for Xbox games and consoles are on the rise. Specifically, the Xbox Series X console is seeing a $100 price hike. Additionally, Xbox games will now be sold at $80, which is a $10 increase from the previous price. Even accessories such as controllers and headsets will cost more. The only exception to this trend is Xbox Game Pass, although it’s set to undergo a price adjustment in the future. Xbox has yet to offer an explanation for these significant price increases, but some have defended the company by pointing out factors like inflation, tariffs, and the escalating costs associated with developing video games.

Indeed, inflation and tariffs, along with the economic instability they cause, are significant factors to take into account. On the other hand, the increasing expenses in video game development may not require as much attention, as this predicament is primarily due to the actions of studios and those providing the funding. Video game budgets have not inflated excessively due to market pressures or player expectations, but rather due to excessive specialization and unnecessary, imprudent spending habits.

As a passionate gamer, I find myself grappling with the recent price hike of Xbox, echoing a similar trend from Nintendo. In 2025, Nintendo is set to charge an eye-watering $80 for Mario Kart, and even more for The Legend of Zelda: Breath of the Wild than when it first released in 2017. It’s almost as if they’re testing the limits of consumer patience!

However, unlike Nintendo, Xbox and its leader Phil Spencer have always stood tall as champions of the gaming community, valuing our needs above all else. They’ve consistently demonstrated a consumer-friendly approach that sets them apart.

Instead of shouldering the expenses caused by inflation, tariffs, and other factors, Xbox is choosing to transfer these costs to its customers. This decision seems peculiar since Xbox aims to compete with PlayStation and Nintendo in the long run, not contract the market by making the hobby increasingly expensive for current and potential consumers.

The problematic aspect of the current situation in the industry is that Xbox and Nintendo are not raising prices merely to cover their expenses or even to make a little extra money. Instead, they are increasing prices with the intention of maintaining their massive earnings, rather than boosting profits or amassing millions.

In fiscal year 2024, Xbox earned over $21 billion in sales. It’s important to note that revenue isn’t the same as profit, but the fact remains: Xbox, much like PlayStation and Nintendo, doesn’t find itself short on funds. The recent price hikes aren’t about survival versus closure; they’re more about adjustments within a financially stable environment.

Even as Xbox invests a massive $75 billion in acquiring Activision, intensifies its profit-driven approach by expanding Xbox Game Pass, and seemingly ignores the need for cost reduction within its own studios, it seeks additional funds from consumers. However, it’s advisable to withhold your money.

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2025-05-01 19:40