Microsoft Raises Xbox Prices in the US Again Amid Ongoing Tariff Issues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 19 2025
0mins
Should l Buy MSFT?
Source: Reuters
Price Increases for Xbox Consoles: Microsoft is raising the prices of its Xbox consoles in the U.S. for the second time this year, with the Series S now costing around $450 and the Series X priced at approximately $650, effective October 3.
Impact of Tariffs and Competition: The price hikes are attributed to tariff-induced cost pressures and competition in the gaming market, with experts noting that these increases are necessary to absorb rising supply chain costs rather than being opportunistic.
Comparison with Sony: Sony also raised the prices of its PlayStation 5 consoles by about $50 last month, indicating a broader trend of increasing console prices in the gaming industry.
Concerns for Industry Growth: Despite expectations for growth driven by new game releases, price hikes and delays in titles may negatively impact the near-term outlook for the video game industry.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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