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**Microsoft Slams Brakes on Affordable Gaming with Massive Price Hikes**
In a shocking move, Microsoft has announced significant price increases for its entire Xbox lineup, ranging from 20% to over 33%. The steep rises are expected to come into effect immediately, with the Digital Xbox Series X now sporting a hefty $550 tag.
Xbox Series S 512 GB – Up from $300 to $379
Xbox Series S 1 TB GB – Up from $350 to $530
Xbox Series X Digital – Up from $450 to $550
Xbox Series X – Up from $500 to $600
Xbox Series X 2TB – $600 to $740
The unprecedented price surge is largely attributed to the rising costs of development, as well as market conditions. While this may seem a drastic measure, it’s likely an attempt by Microsoft to maintain profit margins amidst declining hardware sales and escalating tariffs.
**The Tariff Factor**
It’s difficult to ignore the elephant in the room – the recent 125%-145% fluctuating tariffs imposed on China by the Trump administration. The country plays a significant role in Xbox production, making it likely that these price hikes are at least partially driven by the burden of these additional costs.
As a result, Microsoft is also adjusting the pricing of some new, first-party games to $79.99, citing increased development expenses. This move echoes Nintendo’s recent decision to price Mario Kart World at $80, which sparked concerns about other companies following suit.
**What Does This Mean for the Gaming Industry?**
While Sony and Nintendo may initially appear to be unaffected by these developments, it’s crucial to remember that both Japanese companies also rely heavily on Chinese manufacturing. In the face of these tariffs, it’s only a matter of time before they follow suit with their own price increases.
In this uncertain landscape, consumers are left wondering if the video game industry is prepared for such drastic changes. The situation bears monitoring as we wait to see how other major players in the market respond.
**Conclusion**
Microsoft’s sudden and drastic price hikes may have caught gamers off guard, but it’s essential to acknowledge the broader context. As tariffs continue to impact global markets, it’s likely that this is just the beginning of a wave of price increases across multiple industries.
Source: https://www.forbes.com/sites/paultassi/2025/05/01/microsoft-massively-raises-xbox-prices-80-100-will–make-80-games/
