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Microsoft has announced significant price increases for its Xbox consoles, citing rising development costs and challenging "market conditions." The increases vary by region, with the Xbox Series S going up by £50 to £299.99 in the UK. Prices in the US have seen even steeper rises, with the Series X increasing by between $100 and $130, depending on the model.
It comes as US tariffs - which experts predict will increase prices for consumers - stir global economic uncertainty. However, Microsoft has not explicitly said tariffs were behind the increase.
Xbox prices are also rising in other countries around the world, with the Series S increasing by €80 in Europe and $50 in Australia.
It represents a big change in an industry which would typically see prices go down in the years after a console's launch.
"We understand that these changes are challenging," Microsoft said in a blog post.
"They were made with careful consideration given market conditions and the rising cost of development."
Christopher Dring, who writes about the gaming industry in The Game Business newsletter, said tariffs were "certainly" part of the decision to increase prices.
"With accessories and components made in China, the connection is pretty obvious," he said.
But he said there were other factors at play, such as inflation, changes in exchange rates and the "general rising cost of business".
"All of this is playing havoc in an industry that is seeing limited growth," he said.
"The console game sector has barely grown in terms of users in over 20 years, but costs of manufacturing and game development continue to rise exponentially. Any cost increases, even a small tariff, can have a serious impact on the profitability of these devices."
Historically, in the years following a console's release it would drop in price, but this generation has seen the opposite.
Sony originally listed the PlayStation 5 digital edition at £360 in the UK when it launched in 2020, but over the years its price has increased to its current £429.99 RRP.
Meanwhile, the cost of future Xbox games is also in question, with the firm revealing it anticipated "some of our new, first-party games" would cost $79.99 in 2025.
