On Tuesday, Microsoft confirmed plans to raise prices on its consoles. Beginning May 1, 2025, the prices for both the Series S and Series X will increase. This decision is made even more impactful given the company’s ongoing struggle against a tough market environment and increasing developmental costs. With the Xbox Series S now priced at $299.99, it’s effectively increasing the price of Microsoft’s cheapest console by $80. On the other hand, the premium-tier Xbox Series X – $499.99 now – will raise its price by $100.
These price changes are a reflection of the broader trends taking place in the gaming industry. Companies are under extraordinary stress from all these economic fronts. The Nintendo Switch 2 release date is soon, with a hefty price of $449.99. This change is further scrambling the competitive landscape!
Amanda is a senior writer at TechCrunch, where she writes about the intersection of technology and culture. She stresses that these changes represent a huge change for the entertainment sector. The industry has been through a lot of changes in the last several years.
As for the Xbox Series S and X models, they launched almost five years ago. They have not changed their prices since then! As Microsoft prepares for the price hike, it emphasizes that the decision underwent “careful consideration given market conditions and the rising cost of development.”
Beyond the obvious console price hike, Microsoft isn’t the only company on this bandwagon. Meanwhile, Nintendo has not only voluntarily chosen to raise prices on its first-party accessories as well in response to the same economic pressures. The planned tariffs on goods from other countries proposed during President Donald Trump’s administration have significantly impacted production and distribution processes in the gaming industry.
The Nintendo Switch 2 preorder process has been inspired in a great way. The effect that this impact has on the now decalibrated pricing strategies of every major gaming corporation cannot be overstated.
Now, the gaming community is abuzz with reactions to all these changes. Going forward, we need to keep a close eye on how consumers react to the increasing prices. As both Microsoft and Nintendo make changes to their pricing models, the gaming landscape is likely to change in unpredictable ways.