preCharge News TECH — Just ahead of the 2025 holiday shopping season, Microsoft has raised global retail prices for its Xbox consoles, select controllers, and new first-party games — a move the company attributes to evolving “market conditions” and mounting development costs.

The announcement, posted Thursday on Microsoft’s official support page, marks one of the most sweeping Xbox price increases in years, affecting both the entry-level Xbox Series S and the flagship Series X, as well as accessories and select new titles.

Xbox Prices Climb Amid Inflation and Tariff Pressure

Xbox Series S and X Get Major Bumps in U.S. Pricing

As of Thursday, the Xbox Series S (512 GB) now carries a suggested U.S. price of $379.99, up from $299.99. The Xbox Series X has jumped to $599.99, a $100 hike from its previous price. Microsoft also announced that its special edition Xbox Wireless Controller will now retail for $79.99, up from $69.99.

These increases come as the gaming giant navigates rising production expenses, compounded by President Donald Trump’s renewed tariffs on Chinese imports, which have directly impacted electronics and gaming hardware.

“We understand that these changes are challenging,” Microsoft stated. “They were made with careful consideration given market conditions and the rising cost of development.”

Game Prices Keep Climbing, Driven by Bigger Budgets

Call of Duty, Minecraft Sales Rise, But So Do Costs

New Microsoft first-party titles launching during the holiday season will carry a suggested retail price of $79.99, marking another escalation in video game pricing. This builds on the 2023 shift that pushed top-tier games from $60 to $70.

The higher price tags follow Microsoft’s $75.4 billion acquisition of Activision Blizzard in 2023 — a mega deal that came with mega development budgets. According to internal legal filings cited by Game File, the 2020 title Call of Duty: Black Ops Cold War cost over $700 million to produce.

On Wednesday, Microsoft reported that Call of Duty and Minecraft sales climbed during the fiscal third quarter — a sign that gamers remain loyal, even amid rising costs.

Sony and Nintendo Also Raise the Bar

Industry-Wide Inflation Leaves Gamers With Tougher Choices

Microsoft isn’t alone. Nintendo’s upcoming Switch 2, priced at $449.99, marks a steep jump from the original $300 Switch. The company has also raised prices for some of its major titles.

Sony, for its part, increased prices on PlayStation 5 consoles without disc drives in Europe and three other regions, effective April 14. The company also adjusted pricing for its PlayStation Plus subscription service in several markets.

These shifts reflect a broader industry realignment, where soaring development, shipping, and manufacturing costs are increasingly passed down to consumers.

Outlook: Gamers Pay More for Premium Play

As gaming budgets balloon and economic uncertainty lingers, Microsoft’s move signals what may be a new normal in the console war era — one where value is still promised, but no longer cheap.

The company reaffirmed its focus on offering flexibility and access across devices:

“We continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”

Yet the message is clear: next-gen gaming now comes with next-gen pricing.

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.