Internet Roasts Xbox's Absurd New Price

Xbox Series X and Series S Price Hike

Microsoft Corporation raised the recommended retail price of its Xbox Series X and Series S consoles in several non-U.S. markets in August 2023, marking the first official price increase for the current-generation hardware since its launch in November 2020. The Xbox Series X is a high-performance home video game console that competes with Sony’s PlayStation 5 and Nintendo’s Switch. The Series S is a lower-cost, all-digital variant designed for budget-conscious gamers. The price adjustment was attributed by Microsoft to “competitive conditions” and economic factors such as inflation and currency fluctuations. The move sparked widespread criticism from fans and industry observers, who accused the company of undermining its value proposition during a period of stagnant sales growth.

Key Facts

How Did the Internet React to the Xbox Price Hike?

The internet reacted with widespread mockery and criticism after Microsoft announced price increases for the Xbox Series X and Series S in several regions, with many calling the move “absurd” and “tone-deaf.” The Kotaku article that broke the story aggregated reactions from social media platforms including Twitter, Reddit, and ResetEra. A common sentiment was that Microsoft was alienating its core audience while failing to deliver exclusive games that could justify the higher cost. One user on ResetEra wrote: “Microsoft is out of their minds if they think this is acceptable. They have no games and now they want more money?” The backlash was particularly sharp because the price increase came at a time when Xbox sales were already trailing behind PlayStation 5 globally. According to industry analyst data cited in the article, Xbox Series X/S cumulative sales were approximately 21 million units as of June 2023, compared to over 40 million for PlayStation 5. The price hike was seen as a strategic misstep that could further widen the gap.

Kotaku, “The Internet Reacts to the Absurd New Price of an Xbox” “The new pricing feels like a slap in the face to the loyal fans who have stuck with Xbox through a generation of sparse exclusives.”

As of August 2023, the Xbox Series X price increase in the UK represented a 6.7% rise, while the EU increase was 10%.

Why Did Microsoft Raise Xbox Prices?

Microsoft attributed the price increase to “competitive conditions” and macroeconomic factors such as inflation and currency fluctuations, but critics argue the move was unnecessary given the company’s massive cash reserves. In a statement provided to Kotaku, a Microsoft spokesperson said: “We’ve held on to our prices for over two years, but the economic environment has changed. We are adjusting prices to reflect the current market.” However, the company did not raise prices in the United States, its largest market, which led to accusations of targeting weaker economies. The price hike affected only the UK, Europe, Australia, and a few other regions. Analysts noted that Microsoft’s decision came shortly after Sony raised PlayStation 5 prices in many of the same markets in 2022, suggesting a follow-the-leader strategy. Yet Sony’s increase was accompanied by a slate of high-profile exclusives, whereas Microsoft’s first-party output remained limited. The Kotaku article highlighted that the Xbox Game Pass subscription service, often touted as the console’s main value driver, was not discounted to offset the hardware price increase.

Microsoft’s Xbox Series X price increase in the EU was the largest percentage jump at 10%, while the UK saw a 6.7% increase.

Who Is This Price Hike For?

The price hike primarily affects new buyers in the UK, EU, and Australia who are considering purchasing an Xbox Series X or Series S, while existing owners and U.S. customers are unaffected. The move is not aimed at any specific demographic but rather reflects Microsoft’s attempt to maintain profit margins in regions where currency depreciation against the U.S. dollar eroded revenue. However, the backlash suggests that the price increase may deter price-sensitive consumers, especially those who were already weighing the value of Xbox Game Pass against the console’s hardware cost. In contrast, the PlayStation 5 price increase in 2022 did not generate as much outrage, partly because Sony had a stronger lineup of exclusive games. The Kotaku article noted that many commenters on social media said they would now consider switching to PC gaming or buying a PlayStation 5 instead.

Only non-U.S. markets saw price increases, with the EU experiencing the highest percentage rise at 10%.

Common Questions

Will the Xbox Series X price increase affect the United States?

No. Microsoft did not raise prices in the United States. The increase applied only to the UK, European Union, Australia, and a few other regions. The company stated that U.S. pricing would remain unchanged for the foreseeable future.

Did the Xbox Series S also get a price increase?

In most regions, the Xbox Series S price remained the same. The Kotaku article confirmed that only the Xbox Series X saw a price increase in the UK, EU, and Australia. The Series S stayed at its original launch price in those markets.

How did Xbox fans react to the price hike on social media?

Reactions were overwhelmingly negative. Users on Twitter, Reddit, and ResetEra called the move “absurd” and “tone-deaf,” with many pointing out Microsoft’s lack of exclusive games. Some said they would switch to PlayStation or PC gaming. The Kotaku article aggregated dozens of critical posts.

Sources and Methodology

This article is based on the Kotaku article “The Internet Reacts to the Absurd New Price of an Xbox” published on August 2, 2023. The original article aggregated social media reactions and included official statements from Microsoft. Price data was extracted from the article and cross-referenced with Microsoft’s regional store pages. Currency conversions are not applied; all prices are listed in local currencies as reported. This article was last updated on August 3, 2023.