Microsoft is increasing prices for its Xbox consoles, games, and accessories globally due to ongoing tariff uncertainty affecting consumer technology goods. Starting May 1, customers will pay up to $79.99 for some new first-party Xbox games, up from $69.99.
The price jump applies to several items, including the Xbox Series X, now priced at $599, and the Xbox Series S with different storage options. Nintendo also raised prices on its Switch console, but only after releasing its new pricing scheme on April 18.
Manufacturing in China contributes to these price hikes due to high tariffs of up to 145% on consoles and accessories. Microsoft attributes its decision-making process to market conditions and development costs.
The company’s Xbox Game Pass service is also affected, with the $19.99 Ultimate option now allowing users to stream games via cloud to various devices. This move aims to bring gaming experiences to those who can’t afford pricey consoles.
Game Pass revenue increased 45% year-over-year, while gamers played a record 150 million hours through Microsoft’s cloud options during the quarter.
Source: https://finance.yahoo.com/news/microsoft-raises-xbox-console-prices-games-to-start-at-80-amid-tariff-uncertainty-181623260.html