Microsoft has once again raised prices on its Xbox consoles in the United States, marking the second pragmatic play games increase this year and adding new tension to the ongoing console wars. Starting October 3, the Xbox Series S (1 TB) will retail for around $450, while the flagship Series X model jumps to $650. The special Galaxy Black Series X edition with 2 TB of storage will now cost close to $800—a new high for Microsoft’s gaming hardware.
The company attributes this latest increase to tariff pressures, higher manufacturing costs, and persistent supply chain disruptions rather than simple profit maximization. Analysts note that these costs have been climbing globally since 2024, and Microsoft has struggled to maintain margins while continuing to expand its Xbox Game Studios portfolio and cloud gaming infrastructure.
The timing of the hike is particularly notable because it follows a similar move by Sony, which recently raised the price of the PlayStation 5 in the U.S. and Europe. The two companies now appear to be adjusting to the same economic pressures that have hit the broader tech industry. Still, for consumers already facing inflation and higher digital content costs, these price jumps are unlikely to be popular.
The decision also renews scrutiny of Microsoft’s Game Pass strategy. Critics, including former FTC chair Lina Khan, have pointed out that Microsoft previously pledged not to increase subscription costs or restrict competition following its acquisition of Activision Blizzard. The new pricing and recent Game Pass adjustments—especially for the Ultimate tier—are now being viewed as evidence that the subscription model may not be as consumer-friendly as once promised.
Some industry experts argue that the company is making a necessary move to keep hardware sustainable in a changing global market. Others warn that pushing console prices higher could accelerate the shift toward PC gaming, cloud platforms, and even mobile streaming. For millions of Xbox fans, one thing is certain: console gaming just became a more expensive habit, and expectations for performance, exclusives, and value are rising faster than ever.