Between the April announcement of President Trump’s tariffs and the concerning comments about what they could mean across various business sectors, it’s no wonder Americans are feeling very economically unsure at the moment.
To add a cherry on top of that not-so-appealing sundae, people are also seeing prices go up everywhere from the mall to the grocery store — and some of their favorite places to shop for cheaper alternatives, such as Temu and Shein, have both recently announced that their prices are going up.
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With so many worries about money, people are feeling reserved about non-essential spending. A March report from the Commerce Department shows that more Americans saved and pulled back on purchasing, a trend that’s likely to continue in this uncertain climate.
Related: Temu quietly makes drastic decision as consumers switch gears
Now tech behemoth Microsoft (MSFT) has also made a new announcement about raising some of its costs, and it’s already made a lot of people angry among a loyal user base of millions.
Phil Spencer, CEO of Microsoft Gaming.
Image source: Bloomberg/Getty Images
Microsoft’s big price hike
In a statement made on May 1, Microsoft detailed price increases for its video game consoles, accessories such as headsets and controllers, and some of its games.
The price hike for consoles is not insignificant, either. The smallest increase is for the Xbox Series S 512, which increases in price by $80, going from $299.99 to $379.99. The largest increase affects the Xbox Series X 2TB Galaxy Special Edition console, which gets an $130 bump, going from $599.99 to $729.99.
While the Xbox’s core controllers will remain $64.99, prices on its limited edition controller will increase $10 from $79.99 to $89.99. The Elite Wireless Controller Series 2 (Core) will also get a $10 price increase, while the Full Controller gets a $20 bump. Headset costs will also increase from $109.99 to $119.99.
The games that will see price increases have not yet been named, but it would make sense that they could affect massively popular franchise Call of Duty, which is played by hundreds of thousands of people daily.
“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” Xbox said in the official announcement. “Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”
It’s worth noting that the consoles getting the price increases are already five years old as of 2025. The typical lifespan of a video game console before the technology ages out is 5-8 years.
The ever-increasing cost of video games
While video game fans are already complaining about the price increases on Reddit and other social forums, Microsoft’s move is hardly a surprise, as it mirrors recent decisions of other video game companies.
Related: Nintendo’s shocking price decision frustrates fans
Nintendo recently instituted price increases as well. After 40 years of being known as a family-friendly, affordable source for video games, Nintendo said its sequel to the Switch, called the Switch 2, would cost $449, a whopping $150 more than the original Switch when it came out in 2017 (not to mention a price out of many families’ comfort zones).
Nintendo also revealed a price increase on its first-party games, with some going for as much as $89.99. Previously, most Nintendo first-party titles sold for $49.99-$59.99.
One key reason for these increases is the rising cost of making triple A video games. In 2023, a report from the Competition & Markets Authority stated that some video games can cost as much as $1 billion to make after development and marketing costs add up.
The video game industry made $184.3 billion in revenue in 2024, with 50% of that coming from mobile games. Considering that console games only account for 27% of that number and are trending toward costing more than ever before, it would be no surprise to see more people turning to mobile this year, where the cost of entry for most games is a much more palatable $0.
Related: Nintendo makes a harsh decision amid threat of tariffs
