Former Blizzard president Mike Ybarra has publicly criticized Microsoft for raising Xbox console prices in the U.S., claiming that the increase is not due to tariffs but rather profit-driven motives. Despite Microsoft's reasoning linking the hike to changes in the macroeconomic environment, Ybarra asserted that there are deeper issues affecting profit margins. The price increase affects the Xbox Series X and Series S models, now costing $649.99 and $399.99 respectively, even though Microsoft reported significant revenue growth, particularly from Xbox Game Pass.

Why are Xbox consoles more expensive now?

The price increase is attributed to internal profit issues rather than external tariffs, as indicated by industry experts. As demand and revenue grow, including the earnings from subscription services, the decision to raise prices seems focused on profit maximization.

As for Xbox, its rise in popularity has been bolstered by services like Xbox Game Pass, which has redefined the gaming subscription landscape. The brand continues to expand its portfolio to retain engagement amidst increasing competition from Sony and Nintendo, navigating both pricing challenges as well as ongoing shifts in consumer expectations.