Xbox joins PlayStation in hiking console prices amid U.S. tariff pressures

(Reuters) -Microsoft's Xbox is hiking the prices of its gaming consoles, controllers, first-party titles and other accessories, following similar moves by competitors due to U.S. tariffs impacting global supply chains.

In a blog post on Thursday, Xbox said it will raise prices of its products in the United States, Europe, Australia and the United Kingdom.

The more powerful Xbox Series X console will now retail for approximately $600 in the U.S., an increase of $100.

The move comes a few weeks after PlayStation maker Sony raised the prices of its PlayStation 5 console in various markets, signaling that console manufacturers are preparing for increased manufacturing costs due to tariffs.

The PlayStation 5 Pro console is priced around $700 in the U.S.

Gaming consoles are expected to be the biggest driver of growth for the video game industry this year, with Nintendo gearing up to launch its long-awaited Switch 2 in June.

But the hefty levies imposed by the Trump administration on major manufacturing hubs such as Japan, China, and Vietnam have led to a surge in prices.

Some analysts have warned that these tariffs could hinder industry growth, as potential economic recession and rising inflation may lead consumers to reduce discretionary spending.

Nintendo resumed pre-orders for the Switch 2 late last month after initially delaying them in the U.S. due to tariff uncertainties.

Xbox will increase prices of certain first-party games to around $80, following Nintendo's similar pricing for "Mario Kart World," potentially setting a new industry standard as development costs rise.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)