Playing games has become more expensive! Microsoft announces price increase for Xbox consoles and games
Microsoft announced that it will raise the prices of Xbox series products, including games, consoles, and accessories, with increases of up to $100. This move could have a profound impact on the gaming industry supply chain, especially with the year-end holiday sales season approaching. Despite the price hike raising concerns, Microsoft's stock price rose 10% at the opening, indicating market confidence in its profitability
According to Zhitong Finance APP, against the backdrop of ongoing global trade wars bringing uncertainty, Microsoft (MSFT.US) announced it will raise the prices of its Xbox series products, including games, consoles, and accessories. This move could have far-reaching effects on the supply chain of the gaming industry.
In an official blog post on Thursday morning, Microsoft stated, "We understand that these price adjustments are challenging for consumers, and all changes are made after fully considering market conditions and rising development costs." The company added that it will continue to be committed to "allowing players to enjoy more games on more devices while ensuring Xbox users receive the value they deserve."
Although Microsoft did not explicitly state whether this price increase is directly due to the impact of U.S. tariffs, it is noteworthy that Xbox has long relied on overseas manufacturing, including production lines in China. In a quarterly earnings call on Wednesday, Microsoft pointed out that many computer manufacturers are currently facing inventory pressures above normal levels due to tariff uncertainties.
The price increase has a wide-ranging impact, especially as the year-end holiday sales season approaches, making it particularly noteworthy. Microsoft plans to raise the prices of some first-party games from the original $70 to $80; the Series S 512GB gaming console will increase by $80, bringing the price to $380; the high-performance Series X console will see its price rise from $500 to $600, an increase of $100. Meanwhile, prices for accessories such as controllers and headsets will also be raised.
Microsoft stated that these suggested retail price changes will take effect immediately for retailers worldwide. Despite the widespread attention to the price increase news, Microsoft's stock price rose by as much as 10% to $435.91 per share at the opening on Thursday, indicating that the market still has confidence in its profitability
