In a move that has sent shockwaves through the gaming community, Microsoft announced on September 19, 2025, that it will increase the prices of its Xbox Series X and S consoles in the United States for the second time this year. The hikes, set to take effect on October 3, 2025, are largely attributed to ongoing tariff challenges and broader macroeconomic pressures, raising concerns about the accessibility of next-gen gaming for budget-conscious players.
The price adjustments affect all current Xbox models, with increases ranging from $20 to $70 depending on the variant. Here’s a breakdown of the new pricing:
- Xbox Series S (512GB): Rising from $379.99 to $399.99, a $20 increase.
- Xbox Series S (1TB): Up from $429.99 to $449.99, also a $20 hike.
- Xbox Series X Digital Edition: Jumping from $549.99 to $599.99, an increase of $50.
- Xbox Series X (standard): From $599.99 to $649.99, another $50 rise.
- Xbox Series X 2TB Galaxy Black Special Edition: The steepest jump, from $729.99 to $799.99, adding $70 to the cost.
This follows a previous round of price increases in May 2025, which affected markets including the U.S., Europe, Australia, and the UK. Combined, the Xbox Series X has seen a staggering $150 price escalation within just six months, pushing it far beyond its original launch price of $500 in 2020. At launch, the more affordable Xbox Series S started at $300, but discounts as low as $350 for the Series X in late 2023 now feel like a distant memory.
Microsoft has cited “changes in the macroeconomic environment” as the primary driver, a phrase widely interpreted as a reference to tariffs imposed on imports from key manufacturing regions like China. These tariffs, reinstated and expanded under the Trump administration, have ripple effects across the tech industry, forcing companies to pass on higher supply chain costs to consumers. A Microsoft spokesperson elaborated that the company is “navigating a dynamic environment and addressing applicable impacts,” though prices for accessories like controllers and headsets, as well as consoles in other markets, will remain unchanged for now.
This isn’t an isolated incident in the gaming world. Similar price hikes have hit competitors: Sony’s PlayStation 5 Pro is now listed at $749.99, while Nintendo has also adjusted Switch pricing amid the same tariff pressures. Industry analyst Joost van Dreunen, a games professor at NYU Stern School of Business, pointed out that these adjustments are a direct response to “tariff increases and rising supply chain costs,” with hardware being repriced to absorb new trade barriers.
For gamers, the timing couldn’t be worse. With inflation still lingering and household budgets stretched thin, these increases could deter new entrants into the console market or push existing players toward cheaper alternatives like PC gaming or mobile titles. Historically, console prices have dropped over time—typically seeing reductions five years into a generation—but the current trend bucks that pattern, making high-end gaming feel increasingly exclusive. “Games are becoming more expensive and less affordable for many people,” notes one industry observer, highlighting a shift from the democratized gaming era of the past.
As the holiday season approaches, retailers like Amazon, Best Buy, and Walmart are still offering the consoles at current prices until the October deadline, providing a brief window for shoppers to snag deals. However, with no immediate relief from tariffs in sight, questions loom: Will this spell the end of affordable gaming, or will innovation and competition find a way to bring costs back down? For now, Xbox enthusiasts may need to rethink their budgets—or hold out for potential sales.