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Microsoft raises Xbox prices due to tariffs following PlayStation hike
MSFTMicrosoft(MSFT) New York Post·2025-05-01 17:51

Core Insights - Xbox is increasing prices for its gaming consoles, controllers, first-party titles, and accessories due to US tariffs affecting global supply chains [1] - The Xbox Series X will now retail for approximately 600intheUS,markinga600 in the US, marking a 100 increase [1] - Sony has also raised prices for its PlayStation 5 console, indicating a trend among console manufacturers to adjust for rising manufacturing costs [2] Industry Trends - Gaming consoles are projected to be the primary growth driver for the video game industry this year, with Nintendo set to launch the Switch 2 in June [2][6] - The PlayStation 5 Pro is priced around 700intheUS,reflectingtheindustry′sshifttowardshigherpricing[2]−Nintendohasresumedpre−ordersfortheSwitch2afteradelayduetotariffuncertainties[6]EconomicImpact−TariffsimposedbytheTrumpadministrationonmanufacturinghubslikeJapan,China,andVietnamhaveledtoincreasedpricesinthegamingindustry[3]−Analystshaveexpressedconcernsthatthesetariffsmayhinderindustrygrowth,especiallyamidpotentialeconomicrecessionandrisinginflationaffectingconsumerspending[3]PricingStrategies−Xboxplanstoincreasepricesofcertainfirst−partygamestoaround700 in the US, reflecting the industry's shift towards higher pricing [2] - Nintendo has resumed pre-orders for the Switch 2 after a delay due to tariff uncertainties [6] Economic Impact - Tariffs imposed by the Trump administration on manufacturing hubs like Japan, China, and Vietnam have led to increased prices in the gaming industry [3] - Analysts have expressed concerns that these tariffs may hinder industry growth, especially amid potential economic recession and rising inflation affecting consumer spending [3] Pricing Strategies - Xbox plans to increase prices of certain first-party games to around 80, following Nintendo's pricing strategy for "Mario Kart World," potentially establishing a new industry standard [7]