Microsoft has announced a significant price increase for its Xbox consoles and accessories effective immediately and on a global scale. The Xbox price hike follows Sony's PlayStation 5 price hike, which was announced a few weeks ago.

The Xbox Series S 512GB model costs $379.99, up from $299.99, while the 1TB model costs $429.99, after a $50 increase from $349.99. Shockingly, the Xbox Series X Digital edition is $100 more expensive than its launch price of $449.99, it is now available for $549.99. The Xbox Series X has also had a $100 price hike, it will retail for $599.99, up from $499.99. Microsoft says that the Xbox Series X 2TB Galaxy Special Edition, which was previously priced at $599.99, now costs $729.99.

The Xbox price increase in Europe and the United Kingdom are as follows: The Xbox Series S 512GB model costs £299.99 / €349.99, up by £50 / €50. The Xbox Series X's new price is £499.99 / €599.99, which is an increase of £20 / €50. The 2TB Xbox Series X has had a £40 or €50 price hike to £589.99 / €699.99.

Here are the new Xbox prices for Australia: Xbox Series S 512 - AU$549.00,  Xbox Series S 1TB - AU $599.00, Xbox Series X Digital - AU $749.00, Xbox Series X - AU $849.00, Xbox Series X 2TB Galaxy Black Special Edition - AU $1,049.00.

Microsoft has confirmed that the prices of Xbox games will increase to $80 in the future. Existing games are not impacted by the increase. Eurogamer reports that this change would apply to physical and digital versions. Microsoft has also announced a price increase for some Xbox accessories, including some controllers, headsets, etc.

This is what Microsoft told IGN: “We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”

Gamers have criticized Sony and Microsoft for increasing the prices of hardware that is 5 years old. Many fans argued that this was a poor decision by Microsoft, given that Xbox is already well behind PlayStation in terms of sales revenue. Nintendo recently announced that some Switch 2 games could cost $80 or $90.

Ultimately, such price increases only hurt the consumer, as they never go back down to the previous price.