Xbox Price Hike Sparks Backlash as Former Blizzard President Calls It a “Profit Issue”

Microsoft has announced another price increase for its Xbox consoles in the United States. The change takes effect on October 3rd. This is the second price adjustment for the consoles in less than five months.

The company cites “changes in the macroeconomic environment” as the reason. This refers to recent import tariffs. However, a prominent industry figure strongly disputes this explanation.

Mike Ybarra Challenges Microsoft’s Explanation

Former Blizzard President Mike Ybarra has publicly criticized Microsoft’s decision. He voiced his strong opinions on the social media platform X. Ybarra directly refuted the company’s tariff justification.

He stated that the price hikes are not about tariffs. He called them a “profit issue.” Ybarra explained that the root cause of Microsoft’s profit challenges is a much deeper problem. He believes using tariffs as an excuse is misleading to consumers.

Ybarra expanded on his point. He acknowledged that an initial price increase could be justified when tariffs first went up. However, he argues that continued price hikes without new tariff increases point to a different, internal problem. According to Reuters, such corporate pricing strategies are often scrutinized during economic shifts.

Gamers Face Steep New Console Prices

The new pricing structure represents a significant jump from original launch prices. For example, the 2TB version of the Xbox Series X will now cost $799.99. Its original price was $599.99.

This means some consoles have seen a total increase of $200. The standard Xbox Series X will now cost $649.99, up from its original $499.99. The more affordable Series S models are also affected by the increase. This move places additional financial pressure on gamers during a period of widespread inflation.

The price changes could impact Microsoft’s competitive position against rivals like Sony’s PlayStation 5. Industry analysts will be watching consumer reaction closely. The decision may influence holiday sales figures later this year.

The latest Xbox price increase highlights the growing cost of gaming hardware. Microsoft’s justification is now facing serious scrutiny from within the industry itself.

Info at your fingertips-

Q1: How much is the new Xbox Series X price?

The standard Xbox Series X price is now $649.99. The 2TB version has increased to $799.99. These prices are effective from October 3rd.

Q2: Why is Microsoft raising Xbox prices again?

Microsoft cites “changes in the macroeconomic environment,” specifically import tariffs. Former Blizzard President Mike Ybarra contests this, calling it a profit-driven decision.

Q3: When does the new pricing start?

The new prices for Xbox consoles in the United States take effect on October 3rd. This is the second price hike announced this year.

Q4: What did Mike Ybarra say about the price increase?

Ybarra stated the hikes are a “profit issue,” not a tariff issue. He claims Microsoft is making consumers pay for its internal financial problems.

Q5: Has the Xbox Series S price also increased?

Yes. The 1TB Series S is now $449.99, and the 512GB model is $399.99. This is a rise from their original launch prices.

Trusted Sources

Information in this article was compiled from reporting by Reuters and other major news agencies.