Xbox and Microsoft reveal global price increases for consoles, accessories — and even games

The economy is in a weird place for a variety of reasons. Pandemic inflation has been sticky for most developed nations, supply chain disruption from geopolitical issues continue to wreak havoc, and tariff wars threaten to upend relatively low electronics prices we've been enjoying for decades.

Faced with this trifecta of headwinds, we're starting to see various companies gradually respond. Lenovo Legion Go and other PC gaming handhelds made in China have creeped up in price, and some manufacturers like 8bitdo have pulled out of the United States altogether. But what about our favorite gaming consoles?

PlayStation already increased its prices for console hardware a couple of years ago, making their systems a fair bit more than the cost of an equivalent Xbox. The price of the Nintendo Switch 2 has also been under heavy scrutiny owing to its $449.99 price tag as well. At the time of the PS5 price increase, Microsoft said it wasn't planning to increase its own prices. But, we've slipped into a new economic reality.

Revealed to us by our sources and confirmed by Microsoft earlier today, the firm is increasing the prices of its Xbox consoles, accessories, and "later this year" during the holiday season, games as well — as the industry grapples with increasing costs.

Here are all the May 2025 Xbox price increases

The new price increases are as follows, which includes hardware, accessories, and from the holiday season, games as well. At this time, Xbox Game Pass subscriptions are not going up.

Regions not listed above will also see price increases, which will naturally vary by currency and retailer.

With games hitting a maximum of $80 later in the year, Microsoft sources confirmed to me that, games will still be priced on a scale to reflect their scope, as is the case today. Smaller games could still come in at $50 or less, for example, while AAA big-budget titles like a new Call of Duty are doubtlessly going to hit that maximum price tier.

It's most likely a reaction to the new "maximum" set by Nintendo, as well as Microsoft's internal knowledge that GTA 6 is almost certainly going to come in at $80. Imminently upcoming Xbox games like DOOM: The Dark Ages will escape the price increase, but whatever is coming for Xbox in the fall likely won't. Expect other third-party publishers to follow suit, very soon.

When is expensive too expensive?

Xbox's strategy has been changing rapidly over the past year, leaving core Xbox users confused in some regards and alienated in others. Microsoft revealed that it will no longer prioritize making games exclusive to its Xbox console ecosystem, despite having said in court that PlayStation can use those sales to fund timed exclusives such as Final Fantasy 7 Remake and Death Stranding that exclude Xbox customers.

Xbox has been faced with questions along the lines of "why own an Xbox?" when major games like Forza Horizon 5 are now available on PS5, with absolutely zero likelihood that PlayStation would reciprocate by putting its own games on Xbox. Up until now, at least, you could point to hardware value, but that option has gone out of the window.

Microsoft is hoping that things like Xbox Play Anywhere, accessing your games via Xbox cloud, and the value add from Xbox Game Pass will help keep it in the game. It's certainly kept me around. Even with Xbox first party games hitting $80, at the very least they come with the guarantee of a PC code as well thanks to Xbox Play Anywhere (XPA) — which is generally something that would cost anywhere up to $160 to accomplish from other publishers.

But, the wider gaming audience largely seems to have shrugged its collective shoulders thus far at things like Xbox Play Anywhere so far — if they even know it exists. Naturally, XPA also wouldn't be available with physical copies of games either. But, what if hardware was designed with XPA in mind from the ground up?

Microsoft said that it's hoping it can win in hardware with innovation next gen, which we understand to include both an Xbox Series X successor and some form of Xbox handheld. Microsoft is also working with global hardware OEM partners to create alternative Xbox consoles, which will help it reach customers in regions and countries that are perhaps more deeply impacted by trade restrictions on hardware.

Whether all of these plans — which are largely just words for now — actually helps Xbox, firmly remains to be seen. Xbox hardware has been on a near constant decline for years at this point, but Microsoft did post record Q3 quarterly earnings for gaming just yesterday, suggesting that at least from a business perspective, the strategy is working.

Has the gaming industry simply become too expensive? Are smaller-budget, more affordable games like Expedition 33 the future? Is Xbox doomed to go into full third-party publishing? Hit the comments, let's talk.