Xbox Consoles Get Another Price Bump: What's Going On?

Microsoft has raised the prices of its Xbox consoles again, marking the second time this year. The changes will take effect on October 3, just five months after the last price increase. The Xbox Series S 512GB will now cost $400, up from $380 in May and $300 at launch in 2020. The Xbox Series S 1TB is now $450, up from $430 in May and $350 at launch in 2023. The Xbox Series X Digital is now $600, up from $550 in May and $450 at launch in 2024. The standard Xbox Series X is now $650, up from $600 in May and $500 at launch in 2020. The Xbox Series X 2TB Galaxy Special Edition is now $800, up from $730 in May and $600 at launch in 2024. Microsoft says the price hikes are due to changes in the economy. They say they understand this is tough for gamers and that they thought carefully before making this decision. They also say they are working on ways to offer more games and value for Xbox players. Inflation might explain some of the price increases for older consoles. For example, the $300 price tag for the Xbox Series S at launch in 2020 is worth about $375 today. The $500 price tag for the Xbox Series X in 2020 is now worth about $625. But the big price jumps for newer models can't be blamed on inflation alone. The disc-free Xbox Series X Digital and the 2TB Galaxy Special Edition are now 33 percent more expensive than they were at launch in October 2024. A year's worth of inflation would only account for a small part of that. Console prices used to drop significantly in the years after launch. But now, with high costs and uncertainty, that trend seems to be over. It's unclear how much more gamers will accept before pushing back. For now, it looks like higher console prices are here to stay.