Kicking off the month with a bit of controversy, Microsoft has announced that it’s raising the cost of new, first-party Xbox games worldwide, matching Nintendo Switch 2’s lofty $79.99 price tag. Alongside the sweeping changes, it’s also bumping the cost of its consoles and controllers by up to 22%.
According to Microsoft, the increase reflects “rising development costs” and broader market conditions. It didn’t go into much detail as to what the latter means, but a US trade war affecting imports and exports, steep inflation over the past decade, and bold rivals such as Nintendo Switch 2 already making headlines with its own price jumps are certain to have played a part.
Putting the pitchforks away for just a sec, the caveated wording certainly softens the blow. Microsoft confirms that existing games will steer the course with its current pricing and that the revised sum only affects new, first-party products. There’s nothing to say partners won’t become emboldened to do the same, but the Xbox market isn’t going to change overnight.
To begin with, Xbox will likely take the same route as Nintendo, applying it to flagship games only. As it stands, Mario Kart World is the first to sit on shelves at $80 while the likes of Donkey Kong Banaza sits more in line with Switch 1 prices.
In Microsoft’s case, the portfolio is arguably broader. With Activision Blizzard, Bethesda, Obsidian, Compulsion Games, InXile, Double Fine, Mojang, Ninga Theory, and many, many more under its wing, it’s not hard to imagine Call of Duty, The Elder Scrolls VI, or the next Diablo commanding a similar premium.
Fortunately, Xbox games bought digitally at that price will continue to benefit from the Xbox Play Anywhere initiative – a single purchase enabling play across console and PC. It’s a value proposition few other platforms can match that looks increasingly enticing in an increasingly uncertain landscape.
Console prices have also risen sharply across the board. The standard Xbox Series X now retails for $600 / £500, while the 2TB Galaxy Black Special Edition pushes as high as $729.99 / £589.99. Even core controllers aren’t immune, with Xbox Wireless Controller climbing to $64.99 / £59.99, and special editions stretching close to £75.
| New pricing | Price increase | |
|---|---|---|
| Xbox Series X 2TB Galaxy Black SE | $730 / £590 | $130 |
| Xbox Series X | $600 / £500 | $100 |
| Xbox Series X Digital | $550 / £450 | $100 |
| Xbox Series S 1TB | $430 / £350 | $80 |
| Xbox Series S 512GB | $380 / £300 | $80 |
| Xbox Wireless Controller (Core) | $65 / £60 | $5 |
| Xbox Wireless Controller (Colour) | $70 / £65 | $5 |
| Xbox Wireless Controller SE | $80 / £75 | Varies |
| Xbox Wireless Controller LE | $90 / £75 | $10 |
| Xbox Elite Wireless Controller Series 2 (Core) | $150 / £125 | $10 |
| Xbox Elite Wireless Controller Series 2 (Full) | $200 / £170 | $20 |
| Xbox Stereo Headset | $64.99 | $5 |
| Xbox Wireless Headset | $119.99 | $10 |
This isn’t particularly surprising, given Sony propped up the price of its PS5 in various different regions, including the UK, Europe, Australia, and New Zeland. I’d be interested to see how this affects buy-in now that the console’s four-and-a-half years old and about to go up against a brand new offering.
All about inflation
As much as this news makes our hearts sink, it’s arguably been a long time coming. The average cost of an Xbox game back in 2001 was $50, which by today’s inflation would cost $90. Move to the Xbox 360 era in 2005 and games shifted to $60, which is now worth $98.
The scale of games has grown tremendously, resulting in longer lead time between starting a project and it hitting shelves. Companies have debatably shown unusual restraint for decades compared to just about every other industry.
That said, we’re all feeling the economic squeeze with our pennies not going as far as they used to, making us that much more selective. Pair that with subscriptions, microtransactions, and the various premium deluxe editions, and that very value I’ve just mentioned starts to dissipate.
