Xbox costs in the U.S. increase yet again due to ongoing tariff difficulties faced by Microsoft
In a move that could impact the gaming industry, Microsoft and Sony have announced price increases for their gaming consoles. The changes, attributed to shifts in the macroeconomic environment, come as a result of cost pressures caused by U.S. President Donald Trump's tariffs on imports from manufacturing hubs like China.
Microsoft has announced that it will raise the prices of its Xbox gaming consoles in the U.S. for a second time this year. The price hike will go into effect on October 3. The one-terabyte Series S will cost around $450 after the increase, while the high-end Series X will retail for around $650. The special edition two-terabyte Galaxy Black Series X will be priced nearly at $800.
Similarly, Sony raised the prices of its PlayStation 5 consoles in the U.S. by around $50 last month. The most expensive PS5 Pro from Sony retails for $749.99.
Joost van Dreunen, a games professor at NYU Stern School of Business, explained that these price increases are due to tariff increases and rising costs in the supply chain, not opportunism or software development costs.
The price increases and title delays have cast a cloud over the industry's near-term outlook. The launch of new premium titles like "Grand Theft Auto VI" and hardware such as Nintendo's Switch 2 were expected to be the biggest drivers of growth in the video game industry this year. However, these developments could potentially lead gamers to curb their budgets amid higher inflation levels.
It is important to note that both Xbox and PlayStation divisions have been facing cost pressures due to Trump's tariffs on imports from manufacturing hubs like China. Microsoft previously raised console prices in May in several markets including the United States. The person who explained the Xbox price increase in the USA as a reaction to these economic changes is not specifically named in the available sources.
These price hikes could have significant implications for the gaming industry, which was expected to see a boom this year with the release of new premium titles and hardware. Gamers are advised to keep an eye on these developments and plan their purchases accordingly.
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