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NEW YORK (AP)— Amid persistent tariff uncertainties, an increasing number of gamers are suffering price increases.
This week, Microsoft hiked the suggested retail price for its Xbox systems and controllers worldwide. Its Xbox Series S, for example, now starts at $379.99 in the United States, up $80 from the $299.99 price tag introduced in 2020. And the more powerful Xbox Series X will now cost $599.99, up $100 from its prior price of $499.99.
"We recognize that these changes are difficult," Microsoft stated in a Thursday Xbox support update and accompanying statement emailed to The Associated Press. The tech titan did not mention tariffs explicitly, but rather highlighted "market conditions and the rising cost of development."
Beyond the United States, Microsoft announced Xbox pricing increases for Europe, the United Kingdom, and Australia. The business stated that all other nations will receive local updates.
Some Xbox peripherals, such as wireless controllers, are also impacted, as are headphones in the United States and Canada. Furthermore, Microsoft stated that it plans to increase the price of some of its new, first-party titles this Christmas season to $79.99.
The price increases come at a chaotic and unpredictable moment for the gaming sector, owing partly to new tariffs imposed by US President Donald Trump – and the resulting response from targeted nations, particularly China. Economists have warned that the increased tariffs will raise the prices of a variety of consumer items that now rely on a global supply chain, including electronics.
And Xbox gamers aren't the only ones feeling the effects of the continuing trade disputes. Sony, for example, increased the suggested retail price for PlayStation 5 systems in a few locations last month, including Europe, the Middle East, and Africa, as well as Australia and New Zealand. At the time, the corporation noted "a challenging economic environment, including high inflation and fluctuating exchange rates."
Preorders for Nintendo's much-anticipated Switch 2 were also delayed in April as retailers considered the possible impact of tariffs. Nintendo later acknowledged that some Switch 2 accessories will be price adjusted, but that the console's previously announced basic price of $449.99 would stay same.
The Switch 2 starts at $449.99, which is much more than the first Switch's $299 price tag. While additional bells and whistles may account for a significant amount of the increase, experts have previously stated that higher import tariffs are also a factor.
While firms across industries have already reported poorer or cloudier outlooks due to tariff uncertainties, the full impact on their bottom lines may not be apparent until later. The Xbox pricing increases were revealed just one day after Microsoft reported good results.
The Redmond, Washington-based corporation generated $70.07 billion in revenue from January to March, with a net income of $25.8 billion. Microsoft also experienced a 6% gain in sales from its personal computer arm, which includes its laptop business and Xbox services. However, many of Trump's most recent tariffs have not yet gone into force.
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