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What happened
On September 19, 2025, Microsoft announced a second price increase for its Xbox consoles, effective October 3. The Xbox Series S will now retail for $400, up from $380, while the Series S with 1TB storage will cost $450, and the Xbox Series X will rise to $650 from $600. This follows a previous price hike in May, which saw the Series S increase by $80 and the Series X by $100. Microsoft cites 'changes in the macroeconomic environment' as the reason for the new pricing. Notably, prices for controllers and headsets will remain unchanged. The price hikes come as competition with Sony's PS5 continues, which remains cheaper despite its own recent increases.
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Key insights
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Second Price Hike: Microsoft raises Xbox prices again within four months.
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Macroeconomic Factors: Price increases attributed to changes in the macroeconomic environment.
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Competitive Pricing: Sony's PS5 remains cheaper despite its own price hikes.
Takeaways
The price increases reflect ongoing challenges in the gaming market and economic conditions.