Heavy snow and difficult travel expected again, heaviest snow in southern Minnesota

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

As new tariffs continue to strain global supply chains, some gamers are already feeling price hikes.

Microsoft raised recommended retailer pricing for its Xbox consoles and controllers around the world this week. Its Xbox Series S, for example, now starts at $379.99 

 — up $80 from the $299.99 price tag that 

. And its more powerful Xbox Series X will be $599.99 going forward, a $100 jump from its previous $499.99 listing.

“We understand that these changes are challenging," Microsoft wrote in an 

 on Thursday. The tech giant didn't mention tariffs specifically, but cited wider “market conditions and the rising cost of development.”

The Associated Press reached out to Microsoft for further details Friday morning.

Beyond the U.S., Microsoft also laid out Xbox price adjustments for 

. The company said all other countries would also receive updates locally.

Some Xbox accessories, including wireless controllers, are impacted too — as well as headsets in the U.S. and Canada. And further down the road, Microsoft said it also expects to make some of its new, first-party games more expensive this holiday season — with a price tag of $79.99.

The price hikes arrive during a turbulent and uncertain time for the gaming industry, largely due to 

 implemented by U.S. President Donald Trump — and responding retaliation from targeted countries, notably China. Economists have warned that the steeper levies will result in 

higher prices on a range of consumer goods

 relying on a global supply chain today, including electronics.

And Xbox players aren’t the first gamers to feel impacts amid these ongoing trade wars. Last month, Sony, for example, raised its recommended retail pricing for PlayStation 5 consoles in select markets — including countries in Europe, the Middle East and Africa, as well as Australia and New Zealand. At the time, the company 

 “a challenging economic environment, including high inflation and fluctuating exchange rates.”

 the potential impact of tariffs. Nintendo later 

 that some Switch 2 accessories would see price adjustments — but maintained that its previously-announced baseline price for the console, $449.99, would remain the same.

The starting $449.99 price for the Switch 2 is significantly higher than the original Switch’s $299 price tag. And while new bells and whistles may account for a sizable portion of that hike, experts have 

 that new import taxes are also a contributor.

While companies across industries have already shared weaker or 

, larger impacts on their bottom lines may not be seen until farther down the road. The Xbox price hikes were announced just one day after Microsoft 

For the January-March quarter, the Redmond, Washington-based company raked in $70.07 billion in revenue, with a net income of $25.8 billion. Microsoft also saw a 6% increase for revenue in its personal computing unit, which includes its laptop business and Xbox services. But that was before many of Trump’s latest tariffs took effect.

Homepage

Business and Economic News

Money

The Associated Press

Author

As new tariffs continue to strain global supply chains, some gamers are already feeling price hikes. Microsoft raised recommended retailer pricing for its Xbox consoles and controllers around the world this week.

Microsoft hikes Xbox prices worldwide as gaming industry faces tariff uncertainty

Go Deeper.

Like this?