Microsoft using tariffs as an excuse to raise Xbox Series X/S prices, says former exec

Many gamers looking to buy an Xbox Series X/S were left disgruntled when Microsoft announced that it was going to hike prices of its Xbox Series X/S consoles in the US earlier this month.

So now an Xbox Series X console will cost $649.99 US dollars ($599.99 for the digital version not featuring a Blu-ray drive). Meanwhile the Xbox Series S console now retails at $449.99 US dollars (1 TB version) and $399.99 US dollars (512 MB version).

This is the second time the Redmond giant has hiked prices this year, previously doing so in May. And while Microsoft said the reason behind the price increases was “changes in the macroeconomic environment” (presumably referring to tariffs enacted by Trump earlier this year), a former company exec isn’t convinced.

Actually, Mike Ybarra, who was corporate vice president of Microsoft’s gaming division until 2019, has said tariffs are being used as an excuse by the Redmond company to hike the prices of its consoles.

“The reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse”, said Ybarra in a post on X (via Eurogamer).

However, in Microsoft’s defense it must be said that Sony also increased prices of its PlayStation 5 consoles this summer (the base PS5 console now costs $549.99 in the US). Also, it’s not like Microsoft’s gaming division is not doing well when it comes to profits. At its latest earnings call, the company reported an increase in revenue.

The Xbox Series X (pictured) and Xbox Series S are more expensive now than at the start of 2025.

Mike Ybarra, though, insisted that Microsoft “are going to make consumers continue to pay for those problems”, problems which Ybarra says are not related to the impact of Tariffs enacted by the Trump administration this year…

There’s also the possibility that the former Microsoft executive has an axe to grind here and is disgusted with his former company for some reasons, or maybe his concerns are genuine, but the thing is maybe Microsoft should have thought twice before hiking Xbox console prices again in 2025.

After all, Sony is leading the race when it comes to console sales, having surpassed the 80 million unit sold mark recently. Meanwhile Microsoft has sold little more than 33 million Xbox Series X/S consoles to date according to unofficial data on vgchartz.com.

The price hikes will make gamers less inclined to plumb for an Xbox console vs the PS5, which is seen by many to be the superior console due to its premium exclusives (such as the recent Ghost of Yotei), superior controller and better hardware overall.

At least, though, and perhaps in recognition of the fact that Sony is the leader of the current console generation, Microsoft has brought top games like Forza Horizon 5 to the PS5 this year, it becoming a top-seller too.

Nonetheless, it is still a sad fact for those looking to buy a Microsoft console this year that said console will simply be more expensive, but that’s the way it is, although there should still be some good sales come Black Friday and later Christmas for those willing to wait, though.