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Microsoft hikes Xbox prices in US once again as tariff challenges persist

Microsoft hikes Xbox prices in US once again as tariff challenges persist

The price increases, which Microsoft attributes to “changes in the macroeconomic environment,” will apply to its current generation of hardware, with the one-terabyte Series S set to cost around $450 and the high-end Series X around $650 when the changes go into effect on October 3.
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The special edition two-terabyte Galaxy Black Series X will now retail for nearly $800.
Xbox previously raised console prices in May in several markets including the United States, Europe, Australia and the UK, as U.S. President Donald Trump’s tariffs on imports from manufacturing hubs like China threaten to raise the cost of hardware and compress margins.
Paired with the May increases, the Xbox Series X has seen a $150 price hike within six months, potentially leading gamers to curb budgets amid higher inflation levels.
“This price increase is less about opportunism or even the cost of software development. Instead, it is the result of tariff increases and rising costs in the supply chain. Hardware is being repriced to absorb new trade pressures,” said Joost van Dreunen, games professor at NYU Stern School of Business.
Prices for controllers, headsets and consoles in other markets will remain unchanged, Microsoft said.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona