According to Microsoft, Prices of Xbox Consoles and Game Pass May Hike After the Holiday Season Due to Economic Pressure

The officials of Microsoft have hinted that the Prices of Xbox may increase after the holiday season. Xbox isn’t the only consumer goods company that has decided to take this path, as many other players in the industry have also hiked the price of their products during the holidays. 

The holiday season is a significant period for companies as, during this time, sales are boosted all across the board. But a sudden price hike can cap the overall sales and performance in the market. But still, Microsoft has hinted that after the holidays, prices may hike for the Xbox consoles and the Game Pass.  

Microsoft’s head of Xbox shares the insights behind the price hike

Phil Spencer is the Head of gaming and Xbox at Microsoft. He shared that the increase in the price of the raw material, chips, and other necessary components, as well as the manufacturing cost, has resulted in a hike in the retail price of the products. 

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On October 26, 2022, at The Wall Street Journal’s WSJ Tech Live Conference in Laguna Beach, Phil stated that Microsoft will still charge $300 for the Xbox Series S, and Xbox series X will remain at $500. Even the games developed by the in-house studios will cost $60 instead of $70, which has somewhat become the norm in the current market.

The Xbox Game Pass service cost will remain around $15 a month. But after the holidays, these prices may witness some changes. As Phil has revealed that though they are trying their best, the prices may hike if the situation demands.  

Will there be an increase in the prices after the holidays? 

Spencer said, “Going into this holiday, we thought it was really important that we maintain the prices that we have,” but he also added that there is a high chance that prices will increase “at some point,” on “certain things.”

Phil didn’t offer more details on the statement. He only added, “We have to look at the return on our business the cost of the business.” He hinted about the future hikes by saying, “We’ve held price on our console, we’ve held price on games for us and our subscription. I don’t think we’ll be able to do that forever.” 

But Xbox isn’t the only console manufacturer to increase its retail cost, as another giant in the industry PlayStation 5 has also taken this approach. Sony’s PlayStation 5 has also increased its hardware prices in some parts of the world. 

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What do you think about the price hike of Xbox? Do think Phil’s statements are justified? Let us know in the comments below!