Microsoft (MSFT) is raising the retail price of its Xbox video game console in the U.S. starting in October.
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The Seattle-based technology giant said that prices are being raised starting Oct. 3 because of “changes in the macroeconomic environment.” Microsoft added that it is not increasing prices for Xbox accessories such as controllers and headsets, and that prices in other countries will not change.
While Microsoft didn’t explicitly attribute the increase to the Trump administration’s tariffs, many analysts, and some companies, have warned for months that higher prices are on the way due to import duties. “We understand that these changes are challenging, and they were made with careful consideration,” Microsoft said in announcing the Xbox price increases.
New Prices
This is the second time this year that Microsoft has raised prices on its signature video game console. Rivals Sony (SONY) and Nintendo (NTDOY) have also raised prices on their video game consoles in the U.S. this year after tariffs went into effect.
According to Microsoft’s website, the price increases on the Xbox are as follows: the Xbox Series S will now start at $399, up from $379 previously. A version with 1TB of storage will cost $449. At the same time, the Xbox Series X Digital console will cost $599 starting in October, up from $549 previously. The Xbox Series X with a disc drive will cost $649, up from $599.
The most expensive version of the Xbox, with 2TB of storage, will cost $799 going forward, up from $729 previously. MSFT stock has gained 24% this year.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 34 Wall Street analysts. That rating is based on 33 Buy and one Hold recommendations issued in the last three months. The average price target on MSFT stock of $626.88 implies 22.38% upside from current levels.
