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Microsoft’s Xbox brand is set to elevate the prices of its gaming hardware, controllers, exclusive titles, and other accessories, mirroring similar adjustments made by industry rivals. This decision stems from the impact of U.S. tariffs on global supply chains.
Global Price Increases Announced
In a official statement released on Thursday, Xbox disclosed that it will implement price hikes for its products in the United States, Europe, Australia, and the United Kingdom.
Xbox Series X Price Adjustment
At the forefront of these changes is the more potent Xbox Series X console. The retail price will now be approximately $600 in the U.S., marking an increase of $100.
The Broader Industry Context
This announcement follows a recent price increase by Sony for its PlayStation 5 (PS5) console across various regions, indicating that console manufacturers are bracing for heightened production costs due to tariffs.
The PS5 Pro console is currently priced around $700 in the U.S.
The Impact of Tariffs on Gaming Industry
The gaming console sector is projected to be a major catalyst for growth in the video game industry this year. Nintendo is preparing to launch its highly anticipated Switch 2 in June.
The tariffs imposed by the U.S. on key manufacturing countries, including Japan, China, and Vietnam, have led to a significant rise in prices.
The Collateral Concerns
Market analysts have expressed caution, suggesting that these tariffs could potentially impede industry growth. An impending economic downturn and escalating inflation may prompt consumers to cut back on non-essential expenditures.
Despite these challenges, Nintendo resumed pre-orders for the Switch 2 late last month. These orders were initially postponed in the U.S. due to uncertainties surrounding tariffs.
Game Pricing Shifts
Xbox will also be boosting the prices of select exclusive games to around $80. This move aligns with Nintendo’s pricing strategy for “Mario Kart World,” and could establish a new benchmark within the industry as development costs continue to climb.