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Microsoft raises Xbox prices globally, following Sony
Microsoft announced Thursday that it will increase Xbox console prices worldwide, citing "market conditions" just days after Sony made a similar move with its PlayStation 5.
The tech giant also plans to raise prices for some new games developed by its video game subsidiaries.
"We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development," the company said on its website.
While not explicitly mentioned by Microsoft, US President Donald Trump's tariffs on Washington's trading partners have cast a shadow over the gaming industry.
Xbox consoles are primarily manufactured in China, which faces 145 percent US tariffs on numerous products under the Trump administration.
In the United States, the entry-level Xbox Series S will jump from $299.99 to $379.99, a 27-percent increase.
The premium Series X Galaxy Black model will now retail for $729.99, up from $599.99 previously -- a 22 percent hike.
Additionally, certain new games from Microsoft-owned studios will be priced at $79.99, up 14 percent from the current $69.99.
In Europe, the Series S will rise from 299.99 euros to 349.99 euros, a 17-percent increase.
The Series S and X launched in late 2020 and have sold approximately 30 million units, according to industry analysts' estimates.
In mid-April, Sony announced price increases for several PlayStation 5 models in select markets, including Europe but notably excluding the United States.
PS5 consoles are also primarily assembled in China.
F.Schneider--AMWN