Microsoft is once again increasing Xbox console prices just weeks before the holiday shopping season, marking the second price increase in just six months. The latest hike adds up to $150 more for consoles at a time when many families are already feeling financial pressure.
Starting October 3, consumers will face these new prices:
- Xbox Series X: Around $650 (up from previous pricing)
- Xbox Series S 512 $399.99
- Special Edition model: Nearly $800
On its website, Microsoft blamed "changes in the macroeconomic environment" for the price increases.
WATCH: How to Save Money on Gaming Console Purchases:
Industry-wide trend hits gaming
Microsoft isn't the only company raising prices. Their competitor Sony, also increased PlayStation 5 prices by about $50 last month, signaling an industry-wide shift.
Why the timing? According to Northern Kentucky University Professor Darrin Wilson, retailers initially absorbed extra tariff costs but are now passing them on to consumers.
"Consumer confidence is down, and that's going to translate into the holiday buying season as well," Wilson said.
Shoppers adapt with early purchases
The price pressures are changing shopping behaviors. Wilson noted that many consumers are getting a head start on holiday purchases.
"People are buying their Christmas gifts or holiday gifts now or sooner than they have historically," Wilson said.
Consumer surveys show millennials and Gen Z are expected to spend significantly less this holiday season.
"There's really no alternative, right? Especially for gaming consoles and so forth, you know, maybe trading from one system to another," Wilson said.
Money-saving strategies for console shoppers
- Act early for the best deals. Wilson's top advice: "Getting it early and looking for those deals earlier on in the season are really the consumer's best option."
- Trade-in programs: Xbox Series X or S buyers can trade in older models for up to $180 back on their purchase.
- Use price-tracking tools like Rakuten or Honey
- Consider older or refurbished models for budget-conscious shoppers
- Shop around for the best deals before prices potentially rise further
What's staying the same
Microsoft confirmed it will not raise prices on accessories like headsets and controllers — those prices will remain unchanged.
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