Will Trump's Tariffs Only Affect US Consumers? The answer is of course not. Yesterday, Microsoft announced an immediate price increase for its Xbox Series X/S consoles, accessories and games worldwide. This move comes just weeks after Sony raised the price of its PlayStation 5 console in three markets.
This is the first time Microsoft has raised the price of its Xbox consoles and accessories since they were launched five years ago. For example, the price of games now starts at $80 compared to $70 previously. Although the price of consoles and accessories has been raised worldwide, the highest increase is for the US market.
For example, the price of the Xbox Series X in the US has increased by $100 to $600 each, while in the UK it is only £50 to £300 (~$5330) each. All of these increases are related to the high tariffs imposed by the US on all of its trading partners. With the Xbox chips being made in Malaysia with a 24% tariff and the consoles being assembled in China with a tariff of up to 245%, product price increases are inevitable. By raising the product's selling price to all markets, Microsoft was able to avoid more than doubling the price in America alone.