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Xbox prices hiked worldwide amid tariff uncertainty | Xbox prices hiked worldwide amid tariff uncertainty |
(33 minutes later) | |
Microsoft has significantly raised prices for its Xbox console, citing increasing development costs and what it called "market conditions". | Microsoft has significantly raised prices for its Xbox console, citing increasing development costs and what it called "market conditions". |
The increases vary from country to country, with Xbox Series S consoles going up by £50 to £299.99 in the UK. | The increases vary from country to country, with Xbox Series S consoles going up by £50 to £299.99 in the UK. |
The US has seen even steeper price rises, with the Series X increasing in price by between $100 (£75) and $130, depending on the model. | The US has seen even steeper price rises, with the Series X increasing in price by between $100 (£75) and $130, depending on the model. |
It comes as US tariffs - which experts predict will increase prices for consumers - stir global economic uncertainty. However, Microsoft has not explicitly said tariffs were behind the increase. | It comes as US tariffs - which experts predict will increase prices for consumers - stir global economic uncertainty. However, Microsoft has not explicitly said tariffs were behind the increase. |
Xbox prices are also rising in other countries around the world, with the Series S increasing by €80 in Europe and $50 in Australia. | Xbox prices are also rising in other countries around the world, with the Series S increasing by €80 in Europe and $50 in Australia. |
It represents a big change in an industry which would typically see prices go down in the years after a console's launch. | It represents a big change in an industry which would typically see prices go down in the years after a console's launch. |
"We understand that these changes are challenging," Microsoft said in a blog post. | "We understand that these changes are challenging," Microsoft said in a blog post. |
"They were made with careful consideration given market conditions and the rising cost of development." | "They were made with careful consideration given market conditions and the rising cost of development." |
Kedhrin Gonzalez, founder of Rip & Tear studios, told the BBC he felt the price rise was "inevitable" and "catalysed by current tariff disruptions". | Kedhrin Gonzalez, founder of Rip & Tear studios, told the BBC he felt the price rise was "inevitable" and "catalysed by current tariff disruptions". |
"Gamers will suffer most, with little hope of prices decreasing," he said. | "Gamers will suffer most, with little hope of prices decreasing," he said. |
"This could significantly impact Microsoft's already modest Xbox sales and potentially trigger broader industry repercussions. | "This could significantly impact Microsoft's already modest Xbox sales and potentially trigger broader industry repercussions. |
"This probably won't be the last price hike we see." | "This probably won't be the last price hike we see." |
And Christopher Dring, who writes about the gaming industry in The Game Business newsletter, told the BBC tariffs were "certainly" part of the decision to increase prices. | |
"With accessories and components made in China, the connection is pretty obvious," he said. | |
But he said there were other factors at play, such as inflation, changes in exchange rates and the "general rising cost of business". | |
"All of this is playing havoc in an industry that is seeing limited growth," he said. | |
"The console game sector has barely grown in terms of users in over 20 years, but costs of manufacturing and game development continue to rise exponentially. | |
"Any cost increases, even a small tariff, can have a serious impact on the profitability of these devices." | |
Games going up too | Games going up too |
Historically, in the years following a console's release it would drop in price, but this generation has seen the opposite. | Historically, in the years following a console's release it would drop in price, but this generation has seen the opposite. |
Sony originally listed the PlayStation 5 digital edition at £360 in the UK when it launched in 2020, but over the years its price has increased to its current £429.99 RRP. | Sony originally listed the PlayStation 5 digital edition at £360 in the UK when it launched in 2020, but over the years its price has increased to its current £429.99 RRP. |
Meanwhile, the cost of future Xbox games is also in question, with the firm revealing it anticipated "some of our new, first-party games" would cost $79.99 in 2025. | Meanwhile, the cost of future Xbox games is also in question, with the firm revealing it anticipated "some of our new, first-party games" would cost $79.99 in 2025. |
This is the same retail price Nintendo announced for its upcoming Mario Kart World - a cost which caused concern amongst gamers who called it "inaccessible". | This is the same retail price Nintendo announced for its upcoming Mario Kart World - a cost which caused concern amongst gamers who called it "inaccessible". |
Will £75 be the new normal for video games after Switch 2's Mario Kart? | Will £75 be the new normal for video games after Switch 2's Mario Kart? |
But unlike Mario Kart, which will cost less if bought digitally rather than in a physical box, Microsoft said its new price would be the same across the board. | But unlike Mario Kart, which will cost less if bought digitally rather than in a physical box, Microsoft said its new price would be the same across the board. |
It also clarified it did not plan to increase the price of existing games, only certain new titles developed by the firm itself. | It also clarified it did not plan to increase the price of existing games, only certain new titles developed by the firm itself. |
But Microsoft declined to say whether it plans to increase the price of some future games in the UK as well. | But Microsoft declined to say whether it plans to increase the price of some future games in the UK as well. |
"Local pricing may differ across countries and platforms," the firm said. | "Local pricing may differ across countries and platforms," the firm said. |
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