by Connor May 07,2025
Microsoft has announced a significant price increase on Xbox products, affecting consoles, controllers, headsets, and select games. Starting today, May 1, these new prices will apply globally, except for headset prices, which will only rise in the U.S. and Canada. While game prices remain unchanged for now, Microsoft plans to set the price of new first-party titles at $79.99 during the upcoming holiday season.
Here's a look at the new pricing structure for Xbox products in the U.S.:
For a complete breakdown of regional price adjustments, you can visit the official Xbox announcement page [here](#).
In a statement to IGN, Microsoft explained the reasoning behind these price hikes, citing market conditions and increased development costs:
“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”
While it's unclear which specific first-party titles will see a price increase to $80, potential candidates include the next mainline Call of Duty, the newly delayed Fable (2026), the Perfect Dark reboot, inXile’s Clockwork Revolution, Rare's Everwild, The Coalition's Gears of War: E-Day, Hideo Kojima’s OD, and Undead Labs' State of Decay 3. Double Fine, the developer behind Psychonauts, is also working on a new project.
Microsoft has scheduled an Xbox Games Showcase 2025 and an The Outer Worlds 2 Direct for June, where more details about these price changes and upcoming games are expected to be revealed.
This marks the first price increase for the Xbox Series S since its launch in 2020. Microsoft had previously maintained its pricing when PlayStation raised PS5 prices in 2022, but increased the Xbox Series X price in 2023 in most countries, excluding the U.S. Xbox Game Pass has also seen multiple global price increases.
Microsoft's move follows a trend in the gaming industry, with PlayStation recently raising prices in the UK, Europe, Australia, and New Zealand. Over the past few years, AAA game prices have risen from $60 to $70, and Nintendo has set a $80 price point for upcoming Switch 2 exclusives like Mario Kart World. The Switch 2 itself will launch at $450, amidst economic pressures and fluctuating tariffs that have led to reevaluations of pricing strategies across the industry.
The Entertainment Software Association has highlighted the broader impact of these economic conditions on the gaming industry:
“You know what? It's been interesting with media coverage around video games and tariffs because just unfortunate coincidental timing that the Switch [2 reveal] was the same day as President Trump's announcement. There are so many devices we play video games on. There are other consoles, but as I was saying, VR headsets, our smartphones, people who love PC games, if we think it's just the Switch, then we aren't taking it seriously. 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. This is company-agnostic, this is an entire industry. There's going to be an impact on the entire industry.”
These developments signal challenging times ahead for gamers across all platforms as the industry navigates rising costs and economic pressures.
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