Xbox Series X Price Jumps to $600 as Microsoft Hikes Console and Game Costs

Microsoft has announced sweeping global price increases for its Xbox consoles, accessories, and upcoming games—marking the most significant price adjustments since the launch of the Xbox Series X in 2020. Starting May 1, 2025, the flagship Xbox Series X will now retail for $599.99 in the United States, a $100 increase from its original $499.99 price tag.

The Xbox Series S models are also seeing price hikes, with the 512GB version now priced at $379.99 and the 1TB variant climbing to $449.99. In Europe, those models now cost £349.99/€349.99—up by £50/€50. These changes are effective immediately and apply to both physical and online retailers.

Games Getting More Expensive Too

In addition to hardware, Microsoft confirmed that prices for its first-party games will increase from $70 to $80 during the upcoming holiday season. While the new pricing applies only to new releases, existing Xbox titles will retain their current pricing. Microsoft hasn’t yet shared how these changes will translate in overseas markets, but similar adjustments are expected across Europe and other regions.

The price increase will also affect the upcoming disc-free Xbox Series X, which now costs $549.99, and the 2TB model, which has surged from $599.99 to a hefty $729.99. European prices for the high-capacity model now sit at £589.99/€699.99, up by £40/€50.

Controllers and accessories have not been spared either. Prices for Xbox controllers are rising worldwide, while customers in the US and Canada will see increased costs for Xbox headsets as well.

Why the Sudden Increase?

Microsoft attributed the price changes to “market conditions and the rising cost of development.” A company spokesperson admitted that these adjustments are “challenging,” but said they are necessary to sustain quality game development and support the Xbox ecosystem in a rapidly evolving market.

The decision follows a broader industry trend. Earlier this year, Nintendo revealed that its upcoming Switch 2 title Mario Kart World would launch at $80, igniting conversations about escalating costs in the gaming industry. With inflation, higher development expenses, and the push toward increasingly complex and expansive game worlds, $80 could become the new standard price for AAA titles.

What This Means for Gamers

For consumers, this shift represents a growing cost burden at a time when household budgets are already strained by inflation and economic uncertainty. A console that once cost $499.99 now sells for nearly $600, with games that could push final costs for new players well over $700 once accessories are factored in.

For comparison, Sony’s PlayStation 5 remains at its original $499.99 price in the U.S., though it too has seen minor price adjustments in other regions. Whether Sony will follow Microsoft’s lead with a broader price hike remains to be seen.

Meanwhile, Xbox Game Pass—a subscription service offering access to a large library of games—remains a more budget-friendly alternative, though Microsoft has also raised prices on subscription tiers in the past year.

Industry Reactions and What’s Next

Industry analysts note that this pricing strategy could be risky for Microsoft, particularly in competitive markets where Sony and Nintendo offer cheaper hardware or exclusive game titles. However, it also signals that the era of $60 or even $70 games may be ending, as development costs for modern AAA games continue to climb.

Microsoft says it remains committed to delivering value through its Game Pass service and will continue investing in new titles and experiences.

As the holiday season approaches, gamers will be watching closely to see how these price changes affect console sales and how competitors respond.

Are you willing to pay $80 for a new game or $600 for a console?