Microsoft (NASDAQ: MSFT) has increased prices for its Xbox consoles, games, and accessories worldwide, citing development costs and market challenges. Starting today, select first-party Xbox titles will retail for $79.99, up from $69.99.
“Careful consideration [was given to] market conditions and the rising cost of development,” Microsoft stated.
The Xbox Series X console is rising to $599, a $100 increase. The Xbox Series S (512GB) now costs $379 (up from $299), while the 1TB Series S adjusts slightly from $449 to $429.
Nintendo Follows Similar Path
Nintendo (NTDOY) recently made comparable price adjustments. The company’s “Mario Kart World” for the Switch 2 will also debut at $79.99. Controller prices were raised:
- Joy-Con 2: $95 (from $90)
- Switch 2 Pro Controller: $85 (from $80)
Nintendo noted that pricing decisions are being driven by broader economic pressures and stated:
“Other adjustments to the price of any Nintendo product are also possible in the future depending on market conditions.”
Tariffs Behind the Scenes
Gaming hardware and physical media are largely produced in China and Vietnam, which are currently subject to 145% and 10% tariffs, respectively. While Microsoft avoided directly citing tariffs, the economic pressure from global trade policy is a key factor influencing price changes across the tech industry.
Xbox Game Pass Growth Offers an Alternative
To provide value beyond traditional purchases, Microsoft highlighted growth in its Xbox Game Pass subscription platform during its quarterly earnings report:
- Game Pass revenue increased 45% year-over-year
- 150 million hours of gameplay were streamed through Microsoft’s cloud gaming service last quarter
Game Pass pricing remains unchanged, ranging from $9.99 to $19.99 per month. The Ultimate tier includes cloud-based gaming for consoles, PCs, smartphones, and TVs.
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