Microsoft Raises Xbox Prices, Citing ‘Market Conditions'

Core Points - Microsoft has raised the recommended retail pricing for Xbox consoles and controllers globally, effective May 1, and plans to increase the price of new first-party games during the holiday season [1][4] Pricing Changes - The price of the Series S 512GB console has increased by $80 to$380, while the Series X console has risen by $100 to$600 [4] - Certain games will see a price increase of $10, bringing their price to$80 [4] - Pricing for Xbox headsets will change only in the United States and Canada, with some Xbox controllers remaining at the same price [2] Market Conditions - Microsoft acknowledged that these pricing changes are challenging and were made after careful consideration of market conditions and rising development costs [2] - The company did not confirm if U.S. tariffs influenced the price hikes, but it relies on overseas manufacturing, including in China [3] Retailer Responses - Executives from major retailers, including Walmart and Target, indicated that maintaining low prices amid tariffs is becoming increasingly difficult, and some products may become scarce if retailers opt not to sell them due to tariff costs [4][5] - Retailers have taken measures to manage tariffs, such as Walmart halting some holiday orders from Chinese manufacturers and Target pausing shipments from direct Chinese suppliers [5] Impact on SMBs - Small to medium-sized businesses (SMBs) are facing tough decisions as they seek ways to share, offset, or avoid costs, risking their competitiveness against larger rivals [6]