Recently, Microsoft announced a global price increase for its Xbox Series consoles and accessories, alongside confirmation that select upcoming games will retail at 80 this holiday season.
The wave of price adjustments, largely driven by tariffs and economic pressures, has left many gamers wondering how much more expensive gaming will become—and whether other major players will follow suit. Industry analysts suggest this is just the beginning.
Why Are Gaming Prices Going Up?
The primary culprit behind these increases? Tariffs. With shifting trade policies affecting manufacturing costs, companies like Microsoft are adjusting prices to offset expenses. According to industry experts, the timing of these announcements is strategic, allowing companies to align price hikes with broader economic trends rather than facing backlash piecemeal.
Dr. Serkan Toto of Kantan Games noted that Microsoft’s decision to implement global price increases in one move was a calculated strategy. By leveraging the current economic climate, the company minimized prolonged consumer frustration. Similarly, Joost van Dreunen, an NYU Stern professor, observed that Microsoft’s synchronized adjustments reflect a broader industry shift toward service-based models, where hardware serves as an entry point rather than the core revenue driver.
Other analysts pointed to rising supply chain costs, inflation, and competitive pricing dynamics as additional factors. With PlayStation and Nintendo already adjusting prices in certain markets, Microsoft’s move was seen as inevitable—especially given the growing gap between Xbox’s entry-level pricing and its competitors.
Will PlayStation and Others Follow?
The big question on many gamers’ minds: Will Sony increase PlayStation prices next? Analysts believe it’s highly likely. Rhys Elliott of Alinea Analytics predicted that software price hikes are imminent, with $80 games becoming the new standard. He explained that publishers will likely adopt variable pricing, with premium titles launching at higher costs before gradually decreasing to attract budget-conscious players.
Daniel Ahmad of Niko Partners pointed out that while Sony has already raised PS5 prices in some regions, the U.S. market—historically spared from increases—may soon see adjustments. With tariffs impacting manufacturing, Sony could follow Microsoft’s lead to maintain profitability.
James McWhirter, a senior analyst at Omdia, added that console sales peak during the holiday season, giving companies time to manage inventory before implementing changes. However, with Microsoft making the first move, Sony now has more flexibility to adjust PS5 pricing without bearing the full brunt of consumer criticism alone.
How Will This Affect Gamers?
While rising costs may concern budget-conscious players, analysts don’t expect a significant drop in overall gaming spending. Instead, consumer habits may shift—toward subscriptions, discounted bundles, or free-to-play titles. Live-service games and digital storefronts could see increased engagement as players become more selective with purchases.
Piers Harding-Rolls of Ampere Analytics noted that while higher prices might slow hardware sales, major releases like GTA 6 will likely drive demand regardless. Meanwhile, Rhys Elliott emphasized that gaming has historically proven resilient to economic downturns, with early adopters willing to pay premium prices for new experiences.
However, not all analysts are optimistic. Some warn that if everyday expenses continue rising, discretionary spending on gaming could decline. Mat Piscatella of Circana suggested players might gravitate toward free-to-play titles or revisit older games rather than invest in new hardware or full-priced releases.
The Bottom Line
The gaming industry is navigating uncharted territory, with economic uncertainty influencing pricing strategies across the board. While higher costs may be unavoidable, the market’s adaptability—and the enduring appeal of gaming—suggest that players and companies alike will find ways to adjust.
One thing is clear: The days of stable, predictable pricing are over, at least for now. Gamers should brace for a future where flexibility and smart spending become more important than ever.