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XBox Prices Shoot Up Due to ‘Market Dynamics’

Microsoft has announced significant price increases for its Xbox consoles across multiple global markets, attributing the move to rising development costs and shifting market dynamics.

The price hikes affect both the Xbox Series X and Series S models, with some of the steepest jumps seen in the United States, United Kingdom, and across Europe and Australia.

In the UK, the Xbox Series S has jumped by £50, now retailing at £299.99 — an equivalent of about KSh 54,000. In the US, Xbox Series X consoles have seen a price hike of up to $130 (roughly KSh 17,000), depending on the model. Europe has not been spared either, with prices rising by €80 for the Series S — approximately KSh 11,500 — while Australia saw an increase of $50 AUD (KSh 4,800).

The increases buck a decades-old industry trend where console prices typically decline a few years after launch. Microsoft defended the decision in a public statement, saying, “We understand that these changes are challenging. They were made with careful consideration given market conditions and the rising cost of development.”

While Microsoft did not directly cite US tariffs, analysts believe trade disruptions are playing a key role. “Gamers will suffer most, with little hope of prices decreasing,” said Kedhrin Gonzalez, founder of Rip & Tear Studios. “This could significantly impact Microsoft’s already modest Xbox sales.”

Gaming analyst Christopher Dring added that tariffs, inflation, and a stagnant user base in the console market are squeezing margins. “The sector has barely grown in 20 years, but development costs continue to soar,” he noted.

Microsoft also warned that the cost of its future first-party titles could rise to $79.99 (KSh 10,500) by 2025 — a move that may further stretch the wallets of already pressured gamers.

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