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Xbox often updates their console policies and pricing strategies. In 2024 as well, Xbox Game Pass’ restructured pricing strategy has shocked Xbox gamers. Again in a sudden move, Microsoft has announced a global price rise for its Xbox consoles and first-party games, affecting players worldwide.
In the announcement, Microsoft has stated the increased development costs and challenging market conditions as the two major reasons for this price hike. Notably, this new updated pricing has become effective immediately after the announcement. Though the game prices are still the same, the first-party games will probably go through a significant rise.
On May 1, an unexpected announcement from Microsoft was released, conveying that the company is raising prices on Xbox consoles, controllers, headsets, and some games. Starting from the first day of May, 2025, the Xbox Series S (512 GB) is raised to US$379.99, while the 1 TB variant reaches US$429.99.
Coming to Xbox Series X, it will now cost US$599.99, with the Xbox Series X 2TB Galaxy Special Edition reaching US$729.99. Aside from that, other adjustments include,
Xbox Wireless Controller (Core) - US$64.99
Xbox Wireless Controller (Color) - US$69.99
Xbox Wireless Controller—Special Edition—US$79.99
Xbox Wireless Controller- Limited Edition- US$89.99
Xbox Elite Wireless Controller Series 2 (Core) - US$149.99
Xbox Elite Wireless Controller Series 2 (Full) - US$199.99
Xbox Stereo Headset-US$64.99
Xbox Wireless Headset- US$119.99 (up from $109.99)
Microsoft has acknowledged that these sudden changes are troublesome for players. In an announcement, the company has mentioned, “We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development.”
Further, to pacify the rage and anxiety of Xbox gamers about this sudden price hike, the company revealed, “Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.” Up to this point, it stated nothing particular about its future plans.
This wave of price rises isn’t restricted only to consoles. It has affected the first-party Xbox titles. As per the update, starting this holiday season, all new first-party Xbox games will be priced at US$79.99, up from US$69.99.
Microsoft has stated that this price rise reflects the content, scale, and technical complexity of these titles. However, players have mostly disapproved of this price update, stating that it's been only two years since Xbox increased the first-party AAA titles to US$70 from US$60.
At this point, there’s no news of which games will get affected by this price rise. It seems like the next mainline Call of Duty entry, the upcoming Fable game, Gears of War: E-Day, Clockwork Revolution, Rare's Everwild, etc., will get affected by it.
Microsoft’s decision to increase prices of its Xbox consoles and first-party games marks a significant shift in the gaming industry. Multiple other developer companies did this same thing previously, but Microsoft’s move prominently highlights the increasing economic challenges and the rising costs of game development.
The company knows that these decisions may affect their consumer base, and players will shift to other gaming consoles. To prevent this, Microsoft continuously invests in the Game Pass service to provide players with value and flexibility worldwide.
