Earlier this year, Microsoft raised the prices of Xbox consoles globally in May, with the Xbox Series X now starting at $599.99, up from its original launch price of $499.99. The company attributed the $100 increase to rising tariffs and broader economic factors.
Although gamers were surprised by the steep hike, Microsoft defended it as a necessary adjustment to the shifting economic landscape. Now, less than five months later, the company has announced another round of price increases in the United States, effective October 3. The Xbox Series X|S consoles will see prices rise by $100 to $200, depending on the model and storage capacity.
Microsoft again cited “changes in the macroeconomic environment” as the reason for the adjustment, a phrase many interpret as a reference to recent import tariffs. However, former Blizzard President Mike Ybarra has challenged this explanation, suggesting the hikes are driven more by profit motives than tariff-related costs.
Former Blizzard Chief Calls Out Microsoft Over Xbox Price Hikes
Mike Ybarra, ex-President of Blizzard, has criticized Microsoft on X regarding the recent Xbox console price increases. The 2TB Xbox Series X now retails at $799.99, up from its launch price of $599.99—a $200 jump—which Ybarra argues is driven by profit rather than tariffs.
In his posts, Ybarra wrote, “Console price increases are not tariff issues; they are profit issues. And the reason why profits are not where they should be is a far, far deeper issue than the tariff excuse.”
He also pointed to Microsoft’s 2024 studio layoffs, saying, “Tariffs increased once, justifying a single price adjustment. Using that as a reason to continue raising prices without new tariffs is a different problem, and consumers end up paying for it.”
Ybarra has been outspoken about Xbox’s internal challenges and his own frustrations with Microsoft since leaving Blizzard.
Here’s a breakdown of the new Xbox prices in the U.S.:
- Xbox Series S 512GB — $399.99 (previously $379.99, launch $299.99)
- Xbox Series X 2TB — $799.99 (previously $729.99, launch $599.99)
- Xbox Series X — $649.99 (previously $599.99, launch $499.99)
- Xbox Series X Digital — $599.99 (previously $549.99, launch $449.99)
- Xbox Series S 1TB — $449.99 (previously $429.99, launch $349.99)
