Microsoft raises Xbox prices due to tariffs following PlayStation hike

Microsoft’s Xbox is hiking the prices of its gaming consoles, controllers, first-party titles and other accessories, following similar moves by competitors due to US tariffs impacting global supply chains.In a blog post on Thursday, Xbox said it will raise prices of its products in the US, Europe, Australia and the United Kingdom.The more powerful Xbox Series X console will now retail for approximately $600 in the US, an increase of $100.The move comes a few weeks after PlayStation maker Sony raised the prices of its PlayStation 5 console in various markets, signaling that console manufacturers are preparing for increased manufacturing costs due to tariffs.The PlayStation 5 Pro console is priced around $700 in the US.Gaming consoles are expected to be the biggest driver of growth for the video game industry this year, with Nintendo gearing up to launch its long-awaited Switch 2 in June.But the hefty levies imposed by the Trump administration on major manufacturing hubs such as Japan, China, and Vietnam have led to a surge in prices.Some analysts have warned that these tariffs could hinder industry growth, as potential economic recession and rising inflation may lead consumers to reduce discretionary spending.Nintendo resumed pre-orders for the Switch 2 late last month after initially delaying them in the US due to tariff uncertainties.Xbox will increase prices of certain first-party games to around $80, following Nintendo’s similar pricing for “Mario Kart World,” potentially setting a new industry standard as development costs rise....