If you’re frustrated by the rising cost of video games and hardware, brace yourself—things just got worse. Microsoft has significantly raised the prices of its Xbox hardware and some accessories, echoing a growing industry trend seen from major publishers like Nintendo. As of today, the Xbox Series S (512GB) now costs $380, up from $300, and the Xbox Series X has jumped $100, with the 2TB version climbing from $600 to a hefty $730. Even Xbox controllers haven’t been spared, with standard models increasing by $10 and the premium Xbox Elite Series 2 controller rising by up to $20, depending on the bundle.
Adding to the blow, Microsoft quietly announced that some of its upcoming first-party games will launch at $79.99 starting this holiday season. While Microsoft didn’t cite any reasons, the fact that these price hikes are limited to the US and Canada suggests the Trump administration’s sweeping tariffs on Chinese imports are playing a role. Hardware made in China, including game consoles and accessories, is now significantly more expensive to bring into North America.
It’s a puzzling move for Microsoft, considering it trails both Nintendo and Sony in console sales. But the company may be betting on a different strategy: the long-term success of Xbox Game Pass and cloud streaming. Microsoft has aggressively pushed the idea that the “Xbox” isn’t just a console anymore—it’s a service that can be accessed from the devices you already own. With blockbuster acquisitions like Activision-Blizzard and Mojang, Microsoft has positioned Game Pass as a way to access new games without buying expensive new consoles.
For many, Game Pass may now seem like the more sensible alternative amid rising game and hardware prices. However, the sting of paying $200 for a high-end controller—or watching budget options vanish from shelves—is unlikely to soften, even if the subscription model keeps you in the game.
