Key Takeaways
1. Microsoft will increase Xbox console prices in the US by $20 to $70 starting October 3.
2. The standard Xbox Series X will rise from $600 to $650, and the Series S from $380 to $400.
3. A former Microsoft VP, Mike Ybarra, argues the price increase is not solely due to tariffs, but also due to deeper profit-related issues.
4. The previous price hike in May was attributed to tariffs, but the latest increase reflects broader challenges in Xbox’s strategy.
5. Consumers have until October 2 to buy consoles at the current prices before the increase takes effect.
Microsoft revealed last week (September 19) that it will be increasing prices for its Xbox consoles in the US. This marks the second time prices have gone up, the first being in May due to tariffs. While Microsoft has pointed to broader economic factors for this latest price increase, a former vice president disagrees, suggesting that the company is merely using tariffs as a reason to hike prices amid disappointing profits.
Price Changes Effective Soon
Starting October 3, the price increase ranging from $20 to $70 (depending on the model) will be implemented, specifically for the US market. The standard Xbox Series X will see its price rise from $600 to $650, while the entry-level Xbox Series S will move from $380 to $400. Additionally, the Galaxy Black Special Edition will jump from $730 to $800. Microsoft has attributed the price change to “changes in the macroeconomic environment,” without specifically referencing tariffs.
Insight from Former VP
Following the announcement, Mike Ybarra, former corporate vice president of Microsoft’s gaming division, shared his thoughts on X, stating that the price increase isn’t purely related to tariffs, but rather profits. He mentioned, “And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse,” he added.
Ybarra further explained that while the initial price hike was warranted due to tariffs, the second increase stems from different challenges that Microsoft is encountering. He expressed concern that the company is asking consumers to pay more to make up for its own console and ecosystem strategy, which has led to a drop in console demand.
Last Chance for Standard Pricing
Nonetheless, for those interested in purchasing an Xbox Series console, they have until October 2 to take advantage of the current pricing; after that date, all retailers will begin displaying the new, higher prices.
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