No, the recent and hefty Xbox price increases are not just about tariffs, according to former Blizzard president Mike Ybarra. He has publicly criticized Microsoft, stating that after an initial tariff-related adjustment, these continued hikes, which have seen console prices jump by as much as $200 within a year, are purely about boosting profits. The latest surge pushes the top-tier Xbox Series X to an eye-watering $799.99.
Hasn’t it felt like our wallets are getting lighter every time we look at console prices? After spending countless hours tracking the industry, the sticker shock is real. This isn’t the usual console lifecycle where prices gracefully drop over time. Instead, we’re seeing them climb, and prominent industry figures are starting to call it out.
What’s the New Price for Xbox Consoles?
Microsoft has rolled out its second price increase in five months, significantly inflating the cost of its Xbox Series X|S lineup. The Xbox Series X 2TB model now sits at $799.99, a stark jump from its $599.99 price at the beginning of the year. Other models have also seen increases, with the standard Series X now at $649.99 and the Series S models climbing by another $20.
Why is a Former Blizzard President Sounding Off?
Mike Ybarra, who once led Blizzard and is a former Xbox executive himself, has been vocal on social media. He argues that while the first price increase could be justified by new U.S. tariffs, the subsequent hikes cannot. In his view, “Console price increases are not tariff issues, they are profit issues.” He suggests Microsoft is making consumers pay for deeper problems within its gaming division.
How Does Microsoft Justify the Price Hike?
Microsoft’s official line points to “changes in the macroeconomic environment” as the reason for the price adjustments. The company states that the decision was made with “careful consideration.” This reasoning is similar to justifications offered by other hardware manufacturers, including Sony and Nintendo, who have also raised prices in the current economic climate.
Are Tariffs a Valid Excuse?
According to Ybarra, the “tariff excuse” is wearing thin. He acknowledges the initial impact of tariffs justified a single price adjustment. However, he contends that with no new tariffs being introduced, using this as a reason for a second major price increase is misleading. He believes it’s a cover for the company’s need to improve its profit margins on hardware.
What Does This Mean for Gamers?
For gamers, this means the entry point for current-gen console gaming is becoming significantly more expensive. The traditional expectation of consoles becoming cheaper over their lifespan has been turned on its head. This price surge, especially heading into the holiday season, makes purchasing a new Xbox a much bigger financial decision for many households.
Is Xbox Hardware Struggling?
While Microsoft’s gaming division has reported overall growth, hardware revenue has seen a decline. This has led to speculation that Microsoft is shifting its focus away from console sales and more towards its multi-platform strategy with Game Pass. The price hikes could be a way to offset some of the losses from slower-than-expected console sales.
How Does This Compare to PlayStation?
Sony has also increased the price of the PlayStation 5, citing similar challenging economic conditions. This trend across the industry suggests that the era of cheap, mass-market consoles may be pausing. However, the repeated and steep nature of Xbox’s price increases within such a short timeframe has drawn particular scrutiny.
Will Xbox Prices Go Down Again?
Given the current trend and Microsoft’s justifications, a price drop in the near future seems unlikely. The company appears to be setting a new pricing standard for its hardware. Unless there is a significant shift in the economic landscape or a change in Microsoft’s business strategy, consumers should probably expect these higher prices to stick around.
Follow The Updates
Join AnimeNextSeason on Twitter, Facebook, or BlueSky for every update, or subscribe to our free weekly newsletter for the latest from, gacha and anime.
Don’t miss a single beat of the news that matters to you.