Microsoft announced an increase in the prices of its Xbox consoles and games, driven by market conditions and rising production costs. This decision aligns with a broader trend in the gaming industry, with companies like Nintendo and Sony recently taking similar actions.
Starting this holiday season, consumers will find that Xbox games are priced at $80, the same as Nintendo's Mario Kart World, as noted by Vice News. The price hike is part of a pattern of rising costs in the gaming world, closely mirroring Nintendo's strategies for its new Switch 2 console.
The Xbox Series X console now costs $599.99, a $100 increase from its previous price tag. Vice News also reported that this affects peripherals, including controllers and accessories like the Xbox wireless headset, now retailing at $119.99. The Xbox Series X 2TB Galaxy Black Special Edition model commands an even higher premium of $730, indicating a more than 21% increase as detailed by Forbes.
Interestingly, despite price increases for physical products, the Xbox Game Pass subscription service has not yet seen a price hike. However, there is skepticism about its longevity in maintaining current price levels given the rising costs throughout the Xbox offerings, as mentioned by Vice News.
The increase in game prices is likely to drive more players towards subscription services like Xbox Game Pass, which allow gamers to access a vast library without purchasing individual titles at higher prices. It can also let people play newer games via the cloud without having to own a newer console.
Microsoft assured consumers that not all new Xbox games will see a universal price increase, and will be determined on a case-by-case basis.
These price adjustments occur amid an industry-wide shift, possibly influenced by fluctuating tariffs on Chinese products, said Vice News. China, a central hub for Xbox production, has been targeted by fluctuating tariffs which range significantly, further complicating the pricing landscape.
The Xbox Series X, a five-year-old console, is now nearing the price range of newer competitors like the PlayStation 5 Pro, which is just $100 more expensive. The gaming market remains in flux as companies navigate these changes.
Sony recently announced similar price increases for its PS5 console in Europe, Australia and New Zealand.
With a backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates, SIE has made the tough decision to raise the recommended retail price (RRP) of the PlayStation 5 console in select markets in Europe, Middle East and Africa (EMEA), Australia and New Zealand.
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