Microsoft is raising prices on its Xbox games, consoles and accessories amid greater uncertainty about how the ongoing trade war will impact supply chains and the gaming industry.
The company’s Xbox Series S 512GB console is priced at $380 (roughly Rs. 32,000), an increase of $80 (roughly Rs. 6.743). The more powerful Series X console is priced at $600 (roughly Rs. 50,577), an increase of $100 (roughly Rs. 8,430). Prices for controllers and headsets are also rising. The price increase is global, coming two weeks after rival Sony Group raised PlayStation 5 prices in Europe, Australia and New Zealand, citing inflation and a tough economic environment.
“We know these changes are challenging and were carefully considered given market conditions and rising development costs,” Xbox wrote in a blog post Thursday morning. “Going forward, we’ll continue to focus on delivering more ways to play more games on any screen and ensuring value for Xbox gamers.”
Microsoft’s gaming strategy revolves around building out its Game Pass subscription service, which is available on its consoles, PCs and smart TV platforms. It allows users to download and play a series of free games every month. But it also sells indie games, most notably call of Duty series. This holiday season, Xbox will adjust the prices of some first-party games from $70 (approximately Rs. 5,900) to $80 (approximately Rs. 6,743), in line with Nintendo’s approach to flagship games on the Switch 2 console.
The U.S. company did not say whether the price increases were a direct result of the tariffs. But for years, Xbox has relied on overseas manufacturing, including operations in China. Microsoft said on its quarterly earnings call Wednesday that uncertainty over tariffs has led to computer makers holding higher-than-usual inventories.
Suggested price adjustments for local retailers will begin immediately.
Microsoft shares rose 7.6% in New York on Thursday after the company reported stronger-than-expected revenue growth at its main Azure cloud unit.
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