Microsoft is raising the cost of the Xbox by $100 in the US and hiking game costs, too

While Microsoft shares are still riding high from its expectations-beating earnings report on Wednesday, the tech giant announced it’s raising the price of its high-powered Xbox Series X console by $100 in the US.

The Series X will now cost $600 for US customers, up from $500. Versions of the Xbox Series S, the lower-cost console with weaker graphics hardware, are now $80 more than they were earlier this week.

In a post announcing the price hikes, Microsoft points to “market conditions and the rising cost of development” as the reason for the move. Tariffs are expected to substantially increase the costs of video game console production. Earlier this month, Sony hiked PS5 prices in Europe by up to $75.

Microsoft likely has less wiggle room with spreading out the cost of the levies, since it sold only an estimated 5 million Xbox consoles last year. In the same time, Sony sold more than 20 million PS5s.

Also rising: the price ceiling of Microsoft’s biggest games to $80 this holiday season. That matches the elevated level first seen with Nintendo’s “Mario Kart World.” Before jumping up to $70 with the latest generation of consoles around 2020, the $60 video game price point held strong for about 15 years.