Microsoft raises Xbox prices in U.S. due to economic environment

Microsoft announced on Friday that it will be raising the recommended retail prices of several Xbox consoles in the United States, effective from October. This decision comes in response to "changes in the macroeconomic environment," according to a statement from the company. Interestingly, Microsoft clarified that this price hike will not affect accessories such as controllers and headsets, and that pricing in international markets will remain unchanged. Although the company did not directly link this increase to tariffs implemented by the Trump administration, many businesses have been voicing concerns over rising prices influenced by these tariffs. President Trump has introduced tariffs targeting various countries with the aim of boosting domestic manufacturing. Microsoft acknowledged the difficulties these changes might pose for consumers, emphasizing that the decision was made after thorough consideration. This marks the second time this year that Microsoft has adjusted Xbox console prices in the U.S., following similar moves by competitors Sony and Nintendo as they also respond to the economic climate.