Microsoft Raises Xbox Prices: GTA 6 Advantage & Money Greed

Discover why Microsoft increased Xbox console and game prices in 2025 and explore a detailed price comparison, the impact of tariffs, rising game development costs, and how GTA 6’s hype and corporate strategy are driving these changes.

Microsoft’s recent decision to raise prices on its Xbox consoles and games has sparked discussions among gamers and industry analysts alike. While the company cites market conditions and rising development costs as primary reasons, many believe that corporate strategy and the impending release of blockbuster titles like Grand Theft Auto VI (GTA 6) play significant roles.

Xbox Price Comparison (May 2025)

As of May 1, 2025, Microsoft has implemented the following price increases across its Xbox product line:

Consoles

Accessories

First-Party Games

What’s Changed?

As of 1 May 2025, the Xbox Series X full-price model now retails at $599.99 in the US (up from $499.99), and the Series S has jumped from $299.99 to $379.99. In the UK the Series X rose £20 to £499.99, while the Series S jumped £50 to £299.99. Accessories such as the core wireless controller now start at $64.99, and some limited-edition headsets and controllers have also crept up by roughly £10–£20.

On the games front, Microsoft confirmed that select new first-party titles will cost $79.99 instead of the previous $69.99 when they launch this holiday season. Industry insiders note this follows a wider trend towards $80 games seen on PlayStation and Switch platforms.

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Why Now? Market Conditions and Tariffs

Microsoft attributes the increase to “market conditions and rising development costs,” pointing to supply-chain volatility and higher labour expenses. Analysts have also flagged the impact of hefty U.S. tariffs on Chinese-made electronics—tariffs which, at 145%, have effectively forced console makers to choose between slimmer margins or higher sticker prices.

Furthermore, Sony’s recent PS5 price hike appears to have given Microsoft cover to follow suit, ensuring it isn’t left eating into its profits while development budgets balloon on blockbuster titles.

The “GTA 6 Advantage”

Amid all this, chatter has emerged about the so-called “GTA 6 Advantage”—the idea that Microsoft is leveraging the unprecedented hype around Grand Theft Auto 6, which itself is widely expected to carry an $80 price tag, to soften the blow of its own price rises.

With Rockstar’s next instalment poised to be one of the biggest entertainment launches ever, many assume Microsoft figures fans will swallow the extra console cost just to play GTA 6 on day one.

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Money Greed or Inevitable Adjustment?

Critics argue this is naked corporate greed—squeezing consumers at every turn while profits soar. Yet defenders counter that game development budgets have exploded (with some AAA titles costing over $300 million to make), making price realignment all but unavoidable if companies hope to sustain investment in bigger, more ambitious experiences.

Public reaction has been mixed: some loyal Xbox fans grumble about “paying more for the same hardware,” while others rationalise the hike as a small price for access to next-gen gaming and services like Game Pass that still represent strong value.

Looking Ahead

With GTA 6 on the horizon and console manufacturers under pressure from both economics and consumer expectations, it seems likely that $80 games and £500+ consoles may become the norm rather than the exception.

Whether that spells doom for gamers on tight budgets or simply reflects the evolving cost of creating cutting-edge entertainment, one thing is clear: the industry’s price floor has just been raised.