In May, Microsoft raised the prices of their signature consoles all around the world, and just recently they raised the prices again, only this time exclusively in the US.
They cited “macroeconomic conditions”, although the introduction of new tariffs wasn’t explicitly mentioned.
While this has naturally caused a great deal of frustration to many audiences, many of whom are struggling with the general rising costs of gaming, the former president of Blizzard – Mike Ybarra – has now accused Microsoft of simply using the tariffs as an excuse to try and squeeze more money out of consumers.
Xbox Price Increase
On 19th September 2025, Microsoft confirmed that there would be a second price-hike, with the new prices as follows:
- Xbox Series S 512 – $379.99 > $399.99
- Xbox Series S 1TB – $429.99 > $449.99
- Xbox Series X Digital – $549.99 > $599.99
- Xbox Series X – $599.99 > $649.99
- Xbox Series X 2TB Galaxy Black Special Edition – $729.99 > $799.99
They stated that these changes would go into effect October 3rd.
A statement read: “Beginning on October 3, we will update the recommended retailer pricing for Series S and Series X consoles in the United States due to changes in the macroeconomic environment.
“We understand that these changes are challenging, and they were made with careful consideration. Looking ahead, we continue to focus on offering more ways to play more games across any screen and providing value for Xbox players.”
David Ybarra Accuses Microsoft
Stating that unlike the price hike in May, which was conceivably a justified response to the tariffs, former Blizzard director David Ybarra stated on X that he believed this second price hike was purely for profit.
One tweet stated: “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 vs. the tariff excuse.”
He also said that “an excuse to continue raising prices, with no new increase in tariffs, is simply a different problem, and they are going to make consumers continue to pay for those problems.”
The Cost of Gaming
While it’s getting increasingly expensive for consumers to buy games and accessories, it’s also becoming more costly for developers to stay in business.
Tariffs in the US have no doubt exacerbated this problem, and many do cite it as a cause of rising prices. Of course, of all the companies who are at risk of these kinds of losses, Microsoft isn’t likely to be seen as one of them, which makes this latest rising of prices seem all the more egregious.
Microsoft reported an 18% boost in revenue in their latest earnings call.
