The recent price hikes for the Xbox Series X/S in the US were originally thought to have happened because of the country’s tariffs. However, former Blizzard president Mike Ybarra believes that the price hikes actually came about because Microsoft wants higher profit margins for its console sales.
Originally announced due to “changes in the macroeconomic environment” in the country, Ybarra noted that a single price hike in response to the tariffs makes sense. However, raising them again afterwards is more likely due to the company’s need for a stronger bottom line.
“Console price increases are not tariff issues, they are profit issues,” wrote Ybarra on social media platform X. “And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse.”
In response to another post, Ybarra brought up the fact that tariffs haven’t gone up since they were originally imposed. “An excuse to continue raising prices, with no new increase in tariffs, is simply a different problem, and they are going to make consumers continue to pay for those problems,” he wrote.
The new pricing for Xbox Series X/S consoles will go into effect on October 3 and will not affect the pricing in markets outside of the US. As part of this, the Xbox Series S 512 GB model will cost $399.99, while the 1 TB model will increase to $449.99. The Xbox Series X Digital is set to be the most affordable option of the more powerful console, coming in at $599.99. With the disc drive, the console will cost $649.99. Those looking for larger storage space right out of the box must pay $799.99 for the Xbox Series X 2 TB Galaxy Black Special Edition console.
The differences in pricing are varied. Both models of the Xbox Series S, for example, are going up by $20, while the 2 TB Xbox Series X is seeing the largest jump in price, coming in at $70.
Microsoft is far from the only console maker raising the prices of its hardware. Back in August, Sony announced that prices for all variants of the PS5 would be going up in the US. The base model of the PS5, for example, is now priced at $549.99, while the Digital Edition is now $499.99. The PS5 Pro is the most expensive console in Sony’s line-up at $749.99. None of the console’s various accessories is going up in price, however.
As for Nintendo, the Japanese console maker announced in August that the prices of the original Switch, the Switch OLED, and the Switch Lite have all gone up in the US. The base model Switch saw a $40 increase to $339.99. The OLED model, on the other hand, increased by $50 to $399.99, and the Switch Lite became more expensive by $30, now priced at $229.99.