Microsoft Announces Another Xbox Price Hike in the US Despite Strong Revenue Growth
Microsoft has announced another round of price increases for its Xbox consoles in the United States, marking the second hike in just four months. The company attributed the move to “changes in the macroeconomic environment,” though the decision comes on the heels of a strong earnings report showing significant revenue growth.
The new pricing will only affect consoles, with headsets and controllers remaining unchanged, according to Microsoft.
Updated Xbox Console Prices (US)
- Xbox Series S (512GB): $399.99 (up $20 from $379.99)
- Xbox Series S (1TB): $449.99 (up $20 from $429.99)
- Xbox Series X Digital: $599.99 (up $50 from $549.99)
- Xbox Series X: $649.99 (up $50 from $599.99)
- Xbox Series X 2TB Galaxy Edition: $799.99 (up $70 from $729.99)
When the consoles first launched in 2020, the Xbox Series X retailed at $499.99 while the Series S was priced at $299.99. Over the past five years, those base prices have increased by 30% and 33%, respectively. The Galaxy Edition, which debuted in October 2024 at $599.99, has seen a 33% increase in under a year, now retailing at $799.99.
Microsoft’s Reasoning
Microsoft said it recognizes that the price adjustments may be “challenging” for consumers but stressed that the decision was made after “careful consideration.”
The announcement follows a strong financial quarter for the company. In its most recent earnings call, Microsoft reported an 18% increase in total revenue, reaching $76.4 billion. Gaming also performed well, with Xbox content and services revenue rising by 13%.
Consumer Backlash Likely
The back-to-back increases have sparked concerns among gamers, especially as the five-year-old consoles continue to face rising prices without any hardware upgrades.
While Microsoft has not announced any plans to extend the price hike to other regions, analysts expect the move could pressure competitors like Sony and Nintendo to reconsider their pricing strategies, particularly as the gaming industry braces for ongoing economic uncertainty.
