When tariffs suddenly become a justification
The gaming world is in turmoil: Microsoft has once again announced a price increase for its Xbox consoles in the US. Officially, the company cites “changes in the macroeconomic environment” as the reason for the move. However, specific factors such as tariffs are not mentioned. For many fans, this sounds like a vague explanation, especially since console prices have been rising steadily for years anyway.
Mike Ybarra, former president of Blizzard and previously vice president of Microsoft’s gaming division, is particularly critical. In a widely noted post, he stated: “Console price increases are not tariff issues, they are profit issues.” He said he could understand the price adjustments in May 2025, as they were actually related to higher tariffs at the time. This time, however, he sees a different motivation.
Console price increases are not tariff issues, they are profit issues. And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse.
— Mike Ybarra 😇 (@Qwik) September 19, 2025
Ybarra openly voices what many gamers suspect: “An excuse to further increase prices without any new tariff increases is simply another problem. And they will continue to make consumers pay for these problems.” His words strike a nerve in the community, which increasingly feels that the competition between Xbox and PlayStation is being played out at the expense of buyers.
Record sales, rising prices – and restless fans
The figures contradict the image of a financially stricken gaming division. Microsoft recently reported an 18 percent increase in sales, while the Xbox Game Pass alone brought in nearly $5 billion. For Ybarra, it is therefore clear that the problem lies not with external circumstances, but with internal profit targets.
For US customers, the adjustment means significant additional costs. An Xbox Series X now costs $649.99, while the digital version costs $599.99. Even the more compact Series S now costs between $399.99 and $449.99 – prices that are far above the original entry level.
Sony is also following suit: PS5 prices were raised back in August. At $749.99, the Pro version of the console even exceeds the $700 mark. This continues a trend that seems almost unstoppable: higher prices despite growing sales.
Many gamers are now wondering where this development will lead. While manufacturers point to global crises, tariffs, or production costs, critics like Ybarra remain convinced that in the end, it is always the consumer who pays.
