• Microsoft announces a price hike for Xbox consoles and games, affecting global markets.
• The Xbox Series S will increase from $299.99 to $379.99, while the Series X will jump from $499.99 to $599.99.
• The price for some first-party games is set to rise to $79.99, reflecting similar increases by competitors.
• The hikes are attributed to the impact of tariffs and rising development costs.
• This move follows similar adjustments by Nintendo, sparking wider discussion in the gaming industry.

Microsoft has implemented significant price increases for its Xbox consoles and select games, attributing these changes to "market conditions" and rising production costs. The Xbox Series S will now retail for $379.99, a substantial increase of $80, while the more powerful Series X has jumped to $599.99, marking a rise of $100. This decision aligns with an overall trend in the gaming industry, as competitors like Nintendo have also raised prices in response to the same economic pressures, according to Forbes, BBC, and ABC News.

Additionally, the price of some first-party games is expected to rise to $79.99. This increase makes Microsoft’s pricing comparable to Nintendo's recent adjustments, reflecting a shift in the gaming market where prices typically decrease over time post-launch. The price hikes were outlined during Microsoft's Q3 earnings call, which noted the company’s growth in its gaming division despite these economic challenges, according to India Times and The Hill.

Experts believe that recent tariffs imposed by the U.S. government on imported goods, particularly technology, have contributed significantly to the rising costs of these devices. Microsoft’s statement made it clear that these changes are a response to rising development costs and the global economic landscape, though it did not explicitly mention these tariffs. The increases follow a notable trend in the tech sector, where manufacturers are adjusting prices in light of changing market conditions and consumer affordability, as noted by HuffPost and Forbes.