Microsoft Follows Sony’s Lead: Raising prices on Xbox Consoles and Games

Following in the footsteps of Sony’s PlayStation, Microsoft has announced price increases for its Xbox Series X/S consoles and accessories. This move, attributed to evolving market conditions, will also see a rise in the cost of first-party games. The price adjustments took effect on May 1st, impacting consumers globally, with the most significant changes observed in the United States.

This decision comes after a quarter where Xbox Series X/S sales figures have been less than stellar, suggesting a perhaps challenging road ahead for Microsoft in the console market.

Console and controller Price Adjustments: A Detailed Breakdown

Here’s a comprehensive overview of the new pricing structure for Xbox consoles and controllers:

Xbox Consoles:

• Xbox Series S (512 GB): €349.99 (previously €299.99)
• Xbox Series S (1 TB): €399.99 (previously €349.99)
• Xbox Series X Digital (1 TB): €549.99 (previously €499.99)
• Xbox Series X (1 TB): €599.99 (previously €549.99)
• Xbox Series X Galaxy Black Special edition (2 TB): €699.99 (previously €649.99)

Xbox Controllers:

• Xbox Wireless Controller (Core): €64.99 (unchanged)
• Xbox Wireless Controller (Color): €69.99 (unchanged)
• Xbox Wireless Controller / Special Edition: €79.99 (unadjusted)
• Xbox Wireless Controller / Limited Edition: €89.99 (previously €79.99)
• Xbox Elite Wireless Controller Series 2 (Core): €149.99 (previously €139.99)
• Xbox Elite Wireless Controller Series 2 (Full): €199.99 (previously €179.99)

While some retailers may still be offering consoles at the older prices, these changes are expected to be implemented across all major dealers imminently. Microsoft has also hinted at potential adjustments to console availability in specific regions.

Software Costs on the Rise: AAA Titles to Reach New price Points

Beyond hardware, microsoft is also increasing the price of its first-party blockbuster games. Citing rising development costs, the company plans to sell new titles for $79.99, affecting both digital and physical versions. This shift reflects a broader trend in the gaming industry, where development budgets for AAA titles have ballooned, necessitating higher retail prices.

For example, the development and marketing budget for a major AAA game can easily exceed $200 million, putting pressure on publishers to recoup these costs through sales. This price increase will first affect titles released during the Christmas season.

While the next installment of Call of Duty will be subject to the price increase, the upcoming Doom: The Dark Ages will not. Prices for existing games like Indiana Jones and the Great Circle and The Elder Scrolls IV: Oblivion will remain unchanged.

xbox Game Pass Remains Untouched… For Now

The Xbox Game Pass, Microsoft’s subscription service, is currently unaffected by these price hikes. Though,it’s certainly worth noting that the service’s pricing was adjusted in the summer of 2024,with the Xbox Game pass Ultimate now costing €17.99 per month (previously €14.99). Whether the Game Pass will remain immune to future price adjustments remains to be seen.

Industry-Wide Trend or Isolated Incident?

Microsoft’s decision to raise prices mirrors a similar move by Sony Interactive in April, who increased the prices of the PlayStation 5 and PlayStation Digital Edition by €50 each. This raises questions about whether this is an isolated incident or a sign of a broader trend within the gaming industry. Factors such as inflation, supply chain disruptions, and increased development costs are all contributing to the rising cost of gaming.

The gaming industry is facing unprecedented challenges, and these price adjustments are a necessary step to ensure the continued investment in high-quality gaming experiences.

A Microsoft Spokesperson