Amid uncertainties over tariffs, Microsoft hikes Xbox prices globally. As Trump’s tariffs destabilize the electronics manufacturing industry, Sony also increased the price of the PlayStation 5, and Nintendo postponed pre-orders for the Switch 2.

Days after Sony did the same with its PlayStation 5, Microsoft said Thursday it would raise Xbox system prices globally, blaming “market conditions.” The tech behemoth also intends to increase the cost of a few new titles created by its video game divisions.

Other companies have announced game price increases before Microsoft. Nintendo revealed that the price of “Mario Kart World” on the Switch 2 system will also start at $79.99. Additionally, the business raised the price of the Switch 2 Pro Controller from $80 to $85 and its Joy-Con 2 controllers from $90 to $95.

Video game businesses manufacture consoles and accessories in places like Vietnam, which are subject to a 10% blanket duty, and China, which is currently subject to 145% reciprocal duties. China also produces physical games, discs, and cartridges. Industry analysts believe that since their late 2020 launch, the Series S and X have sold about 30 million units.

Here are the main purposes of raising Xbox console prices:

Promoting Digital Ecosystem

Microsoft may be gently encouraging players to use its digital platforms as a result of growing hardware and software prices. Game Pass transforms from a value product to a calculated move to lock customers into the ecosystem and lessen sticker shock.

The price rise stokes the competition between the Xbox and PlayStation. Under comparable demands from throughout the world, will Sony respond with competitive prices or do the same? Suddenly, perceived value per money is more important than specs alone.

Next Gen Cost

The question of whether next-generation gaming is turning into a luxury is raised by this price increase, which turns a standard hardware revision into a cultural hot topic. Could this be the beginning of a new era in which gamers on a tight budget will need services with subscriptions like Game Pass rather than having them as an option?

Microsoft made particular mention that games bought from the Xbox Store may be played on both PCs and the Xbox when it announced its price changes. Additionally, the business offers its Xbox Game Pass subscription, which costs a fixed monthly fee of $9.99 to $19.99 and grants players access to a vast library of games.

Overall, Sony revealed price hikes for a number of PlayStation 5 models in a few locations, including Europe but noticeably excluding the US, in mid-April. Additionally, the majority of PS5 console assembly takes place in China. Pre-orders for Nintendo’s Switch 2 system, which debuted a few days prior to Trump’s tariff decision, have also been postponed.