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Despite Revenue Growth, Microsoft Is Raising Xbox Console Prices Again

Microsoft is raising the prices of the Xbox lineup of consoles, again, in the United States (US). The move comes just months after the company announced its previous price increase.

Blaming “changes in the macroeconomic environment”, Microsoft says the changes will only be taking place in the US. They will also only impact consoles, and that prices for headsets and controllers won’t be changing.

The new prices for the Xbox lineup of consoles in the US are:

  • Xbox Series S 512GB—$399.99, an increase of $20 from $379.99
  • Xbox Series S 1TB—$449.99, an increase of $20 from $429.99
  • Xbox Series X Digital—$599.99, an increase of $50 from $549.99
  • Xbox Series X—$649.99, an increase of $50 from $599.99
  • Xbox Series X 2TB Galaxy Edition—$799.99, an increase of $70 from $729.99

When they first launched in 2020, the Xbox Series X was $499.99 while the Xbox Series S was $299.99. In the five years since, the base consoles have risen in price by 30% and 33%, respectively. The Galaxy Edition of the Xbox Series X launched at $599.99 in October 2024. It’s since gone up $200, or 33%, in less than a year.

Why Are Xbox Prices Rising Again?

With the second major price increase for five-year-old hardware in four months, Microsoft is blaming the state of the economy. In its announcement, the company says that it understands that the price changes are “challenging” and that “they were made with careful consideration”.

It’s worth mentioning that in Microsoft’s last earnings call, the company revealed that its quarter revenue increase by 18% to $76.4 billion. When it comes to gaming alone, Xbox content and services revenue increased by 13%.

What do you think of this latest price increase from Microsoft on Xbox Series X and Xbox Series S consoles? Let us know in the comments down below.


For more Insider Gaming, read about Lenovo cancelling pre-orders for the Legion Go 2 due to a lack of supply. And don’t forget to sign up for our weekly newsletter

Written by
Mike Straw
Executive Editor

Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…

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Comments

  • Looks like they’re playing around with pricing, Pushing it high enough to slow down sales. That way, they can bow out of the hardware game and tell the community it just wasn’t working out.

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