Microsoft has raised prices across its Xbox product lineup, with increases hitting consumers’ wallets as of May 1, 2025. The company cited “market conditions and the rising cost of development” for the widespread price jumps affecting consoles, controllers, headsets, and upcoming games.
What’s Costing More Now
The Xbox Series X now retails for $599.99, up $100 from its previous $499.99 price tag. The entry-level Series S (512GB) jumped from $299.99 to $379.99, while the 1TB version increased from $349.99 to $429.99. The digital-only Series X saw a $100 increase to $549.99.
For collectors, the Series X 2TB Galaxy Special Edition now costs $729.99, up from $599.99 – a steep $130 increase.
Controllers haven’t escaped the price hikes:
- Core Controllers: $64.99
- Color Controllers: $69.99
- Special Edition Controllers: $79.99
- Limited Edition Controllers: $89.99 (up from $79.99)
- Elite Series 2 Core Controllers: $149.99 (up from $139.99)
- Elite Series 2 Full Controllers: $199.99 (up from $179.99)
Audio gear also saw increases, with the Xbox Wireless Headset now at $119.99 (up from $109.99), though headset increases only apply to the U.S. and Canada.
Perhaps most notable for regular gamers: Microsoft’s first-party games will hit $79.99 starting this holiday season, up from $69.99.
Why Now?
Microsoft’s official statement acknowledges consumer pain: “We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development.”
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Industry insiders point to several factors:
- U.S. tariffs on imports from manufacturing hubs in Asia
- Inflation pressures
- Supply chain issues
- Rising game development costs
Game File reported that Activision’s Call of Duty: Black Ops Cold War (2020) cost upward of $700 million to develop, highlighting the financial stakes for Microsoft following its $75.4 billion Activision Blizzard acquisition.
Industry-Wide Trend
Microsoft isn’t alone. Sony recently raised PlayStation 5 prices in Europe and other regions, while Nintendo priced its upcoming Switch 2 at $449.99 – higher than the original $300 Switch – and plans to charge $80 for some new titles like Mario Kart World.
The Entertainment Software Association warned this trend would affect the entire gaming ecosystem: “This is going to have an impact… And even American-based companies, they’re getting products that need to cross into American borders to make those consoles, to make those games. And so there’s going to be a real impact regardless of company.”
Consumer Impact
These increases land amid broader economic pressures on household budgets. A new Xbox Series X now costs 20% more than its 2020 launch price, while game prices have climbed from $60 to potentially $80 within five years – a 33% increase.
Some analysts worry these price hikes could hamper industry growth as consumers reduce spending on non-essentials during economic uncertainty.
What’s Next
Microsoft says these changes won’t affect existing games. The company plans an Xbox Games Showcase 2025 in June, where consumers might learn which titles will carry the new $80 price tag.
Potential $80 games could include the next Call of Duty, Fable (delayed to 2026), Perfect Dark, Clockwork Revolution, Everwild, Gears of War: E-Day, Hideo Kojima’s OD, or State of Decay 3.
As one industry analyst bluntly put it: “These are expensive times to be a gamer regardless of your platform of choice.”