Xbox Series price hikes return, raising some models by $70

Daniel Sims

Posts: 2,458   +74
Staff
TL;DR: On October 3, Xbox Series consoles will see price increases in the US ranging from $20 to $70. The "budget-priced" 512GB Xbox Series S will rise from $379.99 to $399.99, while the 1TB model will increase from $429.99 to $449.99. Meanwhile, the digital-only Xbox Series X will jump from $549.99 to $599.99. The standard model, which includes a disc drive, will climb from $599.99 to $649.99. Finally, the premium 2TB Series X will leap from an already steep $729.99 to a staggering $799.99.

Bucking historical trends, the current generation of consoles has seen multiple price hikes over the past year due to tariffs and supply chain challenges. Analysts fear that as prices continue to rise, unit sales and spending from younger customers may decline compared to the previous generation.

Although next month's increases are less severe than those in May, raising prices twice in one year sets a troubling precedent. Microsoft attributed the decision to unspecified "macroeconomic changes," likely a reference to ongoing tariffs from the Trump administration. Notably, prices outside the US will remain unchanged.

From Circana's Checkout service: $100+ income households now account for 43% of US video game hardware purchases, up from 36% just a few years ago. 18 – 24-year-olds accounted for only 3% VG hardware purchases during the 12-months ending July 2025, down from 10% during the 12 months ending July 2022.

[image or embed]

– Mat Piscatella (@matpiscatella.bsky.social) September 5, 2025 at 11:01 AM

This environment also prompted Sony and Nintendo to raise prices for the PlayStation 5 and the original Switch in August by as much as $50. Analysts, including Daniel Ahmad of Niko Partners, warn that further increases from both companies remain possible.

As consoles grow more expensive and publishers experiment with $80 price tags for games, analysts are predicting stagnation and turbulence for the market.

Circana's research shows that higher-income households are increasingly dominating video game spending, while 18- to 24-year-olds have become an increasingly small share of hardware buyers over the past three years.

Ampere estimates that by the end of 2025, combined sales of the PS5 and Xbox Series consoles will trail the PlayStation 4 and Xbox One by 14 million units at the same point in their life cycles. That deficit could grow to 20 million by the end of next year.

Consumers also shouldn't expect next-generation consoles – likely arriving in 2027 or 2028 – to be cheaper or even the same price as today's hardware.

The next Xbox, which will support PC games from Steam and other storefronts, could cost nearly twice as much as the PlayStation 6, potentially breaking the four-digit price barrier.

Permalink to story:

 
$800 for a system whose best games can't even compete with Mario Kart Double Dash released for the GameCube. If you game for fun, that is. I can't account for societal pressures like Twitch.
 
With Xbox sales already struggling, this decision will just make it much worse.
They might as well just kill the brand and get done with it.
Why? They don't need the hardware to sell their software.

Have you seen MS's gaming revenue vs Sony's gaming revenue? If what you were suggesting was even remotely true, it wouldn't be so close...
 
Consoles used to get cheaper as time went on. These price increases are pure greed.

But then again, who would ever buy an xbox when every title is on PC as well? Some people here wrote me off as dumb for saying this before, but unless you are a superfan of Halo 5, there is no reason to own Xbox hardware today.
Why? They don't need the hardware to sell their software.

Have you seen MS's gaming revenue vs Sony's gaming revenue? If what you were suggesting was even remotely true, it wouldn't be so close...
Right....yet they continue to waste money on hardware. How many billions will they spend developing the next generation?

Could it be, in the back of their mind, they know that the ever declining CoD numbers and disappointing long term performance of recent Bethesda releases indicate a growing issue in the company itself? That they know their software empire is precarious?
 
So this basically means Xbox is dead right? Who in their right mind is buying an Xbox for $800?
No, those prices only apply in the US, there are no price increases anywhere else in the world. If I wanted one I would simply pick one up the next time I am in Canada. Buy it take it out of the box and put in the suitcase as many of us have done countless times.
 
Right....yet they continue to waste money on hardware. How many billions will they spend developing the next generation?

Could it be, in the back of their mind, they know that the ever declining CoD numbers and disappointing long term performance of recent Bethesda releases indicate a growing issue in the company itself? That they know their software empire is precarious?
You keep spouting your BS then go silent when people call you out on it.

So, why don't you finally compare Sony's gaming revenues vs MS's before I take you seriously.
 
Consoles used to get cheaper as time went on. These price increases are pure greed.

But then again, who would ever buy an xbox when every title is on PC as well? Some people here wrote me off as dumb for saying this before, but unless you are a superfan of Halo 5, there is no reason to own Xbox hardware today.

Right....yet they continue to waste money on hardware. How many billions will they spend developing the next generation?

Could it be, in the back of their mind, they know that the ever declining CoD numbers and disappointing long term performance of recent Bethesda releases indicate a growing issue in the company itself? That they know their software empire is precarious?

I agree the price hikes are hurting all consoles. I originally got an xbox one x then a series x cause gamepass was cheap and awesome. I can also easily connect to my family room TV and its easy for me to connect with my casual friends vs PC.

However, now that I cant get gamepass for $35/yr like before (CDKeys live codes and $1 gamepass ultimate upgrade) I basically done with modern gaming.

PC gaming sucks too, lol.

But, consoles sell cause they are easy to use vs PC for the majority of people, playstation, xbox or nintendo.
 
But that is why MS should just abandon Xbox and become a third party publisher.
No need to push a console so few care about.
So few? People still are buying the console, just at half the rate of PS (which is still MILLIONS).

Which, if they're still making some money on hardware, and they do still make their 30% commission on their Xbox store, it covers the hardware and still pushes the brand (and is another option in the console market). At the least, it's a convenient way to do Game Pass.

But the point is that they aren't going to sink if they don't do PS hardware number (which is a much better approach than what Sony is slowly moving away from), and probably is still worth it (even at a lower volume).
 
No, those prices only apply in the US, there are no price increases anywhere else in the world. If I wanted one I would simply pick one up the next time I am in Canada. Buy it take it out of the box and put in the suitcase as many of us have done countless times.
In the majority of gaming market the Xbox is a minority player already. In Asia it may as well not exist and it was always a bit player in Europe as well. North America is the one major market where the Xbox sells well, and canada's sales get mogged by singular US states.
You keep spouting your BS then go silent when people call you out on it.

So, why don't you finally compare Sony's gaming revenues vs MS's before I take you seriously.
Spencer wouldnt have been mulling the cancellation of the Xbox hardware division if it was doing well. Dotn forget to factor spending over $100 billion acquiring gaming companies when you drool over those financial statements when you take me seriously (seriously LMFAO).
So few? People still are buying the console, just at half the rate of PS (which is still MILLIONS).

Which, if they're still making some money on hardware, and they do still make their 30% commission on their Xbox store, it covers the hardware and still pushes the brand (and is another option in the console market). At the least, it's a convenient way to do Game Pass.

But the point is that they aren't going to sink if they don't do PS hardware number (which is a much better approach than what Sony is slowly moving away from), and probably is still worth it (even at a lower volume).
Total lifetime sales of the series X/S combined is under 32 million total.

That is pathetic. That is barely above what the first gen xbox sold. The xbone sold 58 million total worldwide and that console's financial performance was considered "poor". These companies pour hundreds of millions into developing these consoles, their software, and their backend infrastructure. They're not going to be happy amortizing that over such a paltry number. Consoles made during far cheaper eras, like the n64, gamecube, or OG xbox, were considered sales disappointments.

We also have to consider software sales, like you said they get 30%. That's where the real money is. And xbox......sucks LMFAO. The best Microsoft ever managed was a rate of 7.5 on the x360. Original xbox was 6.88, and the one 6.55.

Meanwhile, look at Playstation numbers. 9.8 for the PS2, and 13.8 for the PS4. Then consider that rumors are the PS5 is pushing an attach ratio over 20! meanwhile the xbox is doing so well MS decided to not announce those numbers anymore. LMFAO.
software attatchment rate.png
 
In the majority of gaming market the Xbox is a minority player already. In Asia it may as well not exist and it was always a bit player in Europe as well. North America is the one major market where the Xbox sells well, and canada's sales get mogged by singular US states.

Spencer wouldnt have been mulling the cancellation of the Xbox hardware division if it was doing well. Dotn forget to factor spending over $100 billion acquiring gaming companies when you drool over those financial statements when you take me seriously (seriously LMFAO).

Total lifetime sales of the series X/S combined is under 32 million total.

That is pathetic. That is barely above what the first gen xbox sold. The xbone sold 58 million total worldwide and that console's financial performance was considered "poor". These companies pour hundreds of millions into developing these consoles, their software, and their backend infrastructure. They're not going to be happy amortizing that over such a paltry number. Consoles made during far cheaper eras, like the n64, gamecube, or OG xbox, were considered sales disappointments.

We also have to consider software sales, like you said they get 30%. That's where the real money is. And xbox......sucks LMFAO. The best Microsoft ever managed was a rate of 7.5 on the x360. Original xbox was 6.88, and the one 6.55.

Meanwhile, look at Playstation numbers. 9.8 for the PS2, and 13.8 for the PS4. Then consider that rumors are the PS5 is pushing an attach ratio over 20! meanwhile the xbox is doing so well MS decided to not announce those numbers anymore. LMFAO.
View attachment 90676
Where. Are. The. Gaming. Revenue. Comparisons.

Don't bullsh!t me by beating around the bush.
 
With Xbox sales already struggling, this decision will just make it much worse.
They might as well just kill the brand and get done with it.
Microsoft probably already lost interest in selling Xbox hardware now. Essentially the name Xbox is mostly just the software. In the country I live in, Microsoft stopped selling Xbox consoles for quite some time now. Looking up online, there’s hardly any stores selling it and I don’t believe it’s a matter of supply since PS5 Pro and Switch 2 are both readily available and sold below MSRP.
 
Where. Are. The. Gaming. Revenue. Comparisons.

Don't bullsh!t me by beating around the bush.
I don't mean to be rude, but I did a quick google "gaming revenue xbox vs playstation" and everything points to PlayStation making billions more in revenue.
PlayStation's overall gaming revenue significantly surpassed Xbox's in recent years
, with estimates placing PlayStation's 2025 gaming content revenue at around $30 billion and Xbox's at approximately $22 billion to $23.5 billion, in large part due to the acquisition of Activision Blizzard. While Xbox's hardware sales declined in FY25, its content and services revenue grew by 16%, and total gaming revenue increased by 9% to $23.5 billion, whereas PlayStation saw higher overall revenue from games and network services
 
I don't mean to be rude, but I did a quick google "gaming revenue xbox vs playstation" and everything points to PlayStation making billions more in revenue.
Ok, but put that into context:
For that segment, Xbox made ~73% of PS's revenue, yet has sold what? Less than 50% of the hardware? Meaning Sony sold 2x more hardware for 1.36x more revenue. And that's also with Xbox in a "slump" (not many good Xbox games in recent memory), and with them never being "on top" any console generation.
I'd say that more than suggests that Xbox is doing good (great even, if you consider they aren't nearly as dependent on a hardware sale to make software sales).

Theinsanegamer keeps being intellectually dishonest and suggesting that Xbox is somehow doing terrible while ignoring important context. But when called out, he ignores the context and spews his BS somewhere else. Almost like he knows it doesn't look good on his end and avoids the topic like a coward...

Anyways, you'd have to be pretty dishonest to see how close MS's gaming revenue is despite their "poor" hardware sales, and conclude that they're in trouble.
 
Ok, but put that into context:
For that segment, Xbox made ~73% of PS's revenue, yet has sold what? Less than 50% of the hardware? Meaning Sony sold 2x more hardware for 1.36x more revenue. And that's also with Xbox in a "slump" (not many good Xbox games in recent memory), and with them never being "on top" any console generation.
I'd say that more than suggests that Xbox is doing good (great even, if you consider they aren't nearly as dependent on a hardware sale to make software sales).

Theinsanegamer keeps being intellectually dishonest and suggesting that Xbox is somehow doing terrible while ignoring important context. But when called out, he ignores the context and spews his BS somewhere else. Almost like he knows it doesn't look good on his end and avoids the topic like a coward...

Anyways, you'd have to be pretty dishonest to see how close MS's gaming revenue is despite their "poor" hardware sales, and conclude that they're in trouble.

Your point will be valid after Xbox makes back the $80bn they blew on activation…which will never be recouped in your lifetime. Until then Xbox will continue to be a train wreck and laughable failure.
 
Ok, but put that into context:
For that segment, Xbox made ~73% of PS's revenue, yet has sold what? Less than 50% of the hardware? Meaning Sony sold 2x more hardware for 1.36x more revenue. And that's also with Xbox in a "slump" (not many good Xbox games in recent memory), and with them never being "on top" any console generation.
I'd say that more than suggests that Xbox is doing good (great even, if you consider they aren't nearly as dependent on a hardware sale to make software sales).

Theinsanegamer keeps being intellectually dishonest and suggesting that Xbox is somehow doing terrible while ignoring important context. But when called out, he ignores the context and spews his BS somewhere else. Almost like he knows it doesn't look good on his end and avoids the topic like a coward...

Anyways, you'd have to be pretty dishonest to see how close MS's gaming revenue is despite their "poor" hardware sales, and conclude that they're in trouble.
I mean, Xbox is doing badly, the only people buying that rubbish is American's and some Canadian's, UK/EU Xbox is a dying brand, Asia pretends it doesn't exist really.

Also, there's a different way to look at your stats, you are correct, I agree, however, doesn't that mean Microsoft are charging more than they need to? So in light of lower sales numbers, they've decided not to lower prices, but instead to raise them even more? And the only people buying them are American's? To me, that just looks like Microsoft ripping off American's, because they've lost everywhere else, to keep the Xbox hardware brand alive.

Also, I'd contend the "never on top" comment, they were on top with the Xbox 360, Microsoft ruined it all themselves with the Xbox One and all these years later, they still don't understand the fundamental fact, good games sell consoles, Instead they just keep buying developers, gutting them, and acting confused why they can't make any good games.
 
I mean, Xbox is doing badly, the only people buying that rubbish is American's and some Canadian's, UK/EU Xbox is a dying brand, Asia pretends it doesn't exist really.

Also, there's a different way to look at your stats, you are correct, I agree, however, doesn't that mean Microsoft are charging more than they need to? So in light of lower sales numbers, they've decided not to lower prices, but instead to raise them even more? And the only people buying them are American's? To me, that just looks like Microsoft ripping off American's, because they've lost everywhere else, to keep the Xbox hardware brand alive.
Xbox hardware is only "doing badly" if you ONLY see it in the old way of "more hardware = more software sales" (which is ignorant in this digital age). And if you are to assume that they are (still) selling at a loss (if they ever really were).
MS has positioned Xbox as software first, then hardware this gen. And it has been good to them gaining access to more than just the Xbox platform customers (as shown by the revenue). To me, it's way more pro-consumer anyways.

They very well could be positioning themselves to drop the hardware, but I think that they're more so pushing themselves into more of a casual "almost PC" console position. A position where hardware sales don't matter, but are nice to have. Heck, it seems like they might be partnering with other companies to license the Xbox brand on other hardware while they're at it too.

I don't know how well all that will pan out, but as long as they can regain their footing with good games, I can't see how reaching more customers with digital goods is such a bad thing. And I don't want Sony to go uncontested (though, me being PC only these days, it won't really affect me).

The only people I see saying it's all doom and gloom with Xbox (brand/hardware/whatever) are the ignorant ones who don't seem to see past the console wars 😋

Also, I'd contend the "never on top" comment, they were on top with the Xbox 360, Microsoft ruined it all themselves with the Xbox One and all these years later, they still don't understand the fundamental fact, good games sell consoles, Instead they just keep buying developers, gutting them, and acting confused why they can't make any good games.
I mean, maybe for a moment, but they weren't on top for that generation either. PS3 still outsold the 360. Which, for it getting so close as the underdog is commendable. And then yeah, they fumbled it.

But you still have it fundamentally wrong (there's that ignorant way of thinking!); good games sell. That's it.
They're past the point where they need their console to sell it on 😂
 
Last edited:
Xbox hardware is only "doing badly" if you ONLY see it in the old way of "more hardware = more software sales" (which is ignorant in this digital age). And if you are to assume that they are (still) selling at a loss (if they ever really were).
MS has positioned Xbox as software first, then hardware this gen. And it has been good to them gaining access to more than just the Xbox platform customers (as shown by the revenue). To me, it's way more pro-consumer anyways.

They very well could be positioning themselves to drop the hardware, but I think that they're more so pushing themselves into more of a casual "almost PC" console position. A position where hardware sales don't matter, but are nice to have. Heck, it seems like they might be partnering with other companies to license the Xbox brand on other hardware while they're at it too.

I don't know how well all that will pan out, but as long as they can regain their footing with good games, I can't see how reaching more customers with digital goods is such a bad thing. And I don't want Sony to go uncontested (though, me being PC only these days, it won't really affect me).

The only people I see saying it's all doom and gloom with Xbox (brand/hardware/whatever) are the ignorant ones who don't seem to see past the console wars 😋


I mean, maybe for a moment, but they weren't on top for that generation either. PS3 still outsold the 360. Which, for it getting so close as the underdog is commendable. And then yeah, they fumbled it.

But you still have it fundamentally wrong (there's that ignorant way of thinking!); good games sell. That's it.
They're past the point where they need their console to sell it on 😂
PS3 only outsold the 360 after the PS4 released...
Even in Europe the PS3 only exceeded 360 sales at the end of the console's generations and the PS3 in North American only ever had of the sales numbers of the 360 even in the end.

The PS3 was kept alive longer than the 360 as it did extremely well in poorer nations where paying to play online was more for rich kids... Eastern Europe for example.


That being said I own a PS5 Pro and a Series X. I use more Series X more, not even close. I really enjoy the games I can move back and forth from PC to Xbox. I have kids so PC/Xbox/Handheld being able to go from one to the other is great. Plus streaming on Gamepass works well or even streaming from my xbox itself.

I honestly feel like this last generation has been a weird one, as IMO the PS5 has been the most meh Playstation generation for me. And I started with the OG PS1. Maybe it is just I've been playing mostly gamepass titles for the last few years. But the Sony Exclusives this last generations have been very meh... Even Spiderman 2 was extremely mediocre when compared to the two bangers the PS4 got. I don't know why you'd want to go full ubisoft on Siderman.


Early this gen Xbox IMO was the better bang for your buck. But clearly we can see that It is marketing that sells. There was plenty of time to pick one up when they were cheap.
 
Back