Xbox Offers Loans After Price Jump to $750

Entity Definition: Xbox Series X Console and Price Increase

The Xbox Series X is a home video game console developed and manufactured by Microsoft Corporation. Released in November 2020, it is the fourth generation of Xbox hardware and competes directly with Sony's PlayStation 5. The console is designed to deliver high-fidelity gaming at up to 4K resolution and 120 frames per second. In 2025, Microsoft raised the price of the Xbox Series X to $749.99 in the United States, citing new tariffs on imported electronics. To mitigate the financial burden, Microsoft began offering buy-now-pay-later financing options, allowing consumers to spread the cost over several months. This price increase and financing shift affect gaming culture by raising the entry cost for console ownership and altering purchasing behavior in the broader games industry.

Key Facts

How Did the Xbox Series X Price Increase to $750?

Microsoft raised the price of the Xbox Series X to $749.99 in the United States in August 2025, a 50% increase from its original $499.99 launch price. The increase was directly attributed to new tariffs imposed on electronics imported from China, as reported by Kotaku. According to the article, a Microsoft spokesperson stated, "We are adjusting pricing to reflect the current economic environment, including the impact of tariffs on our supply chain." The price hike applies to new purchases and does not affect existing orders or bundles.

The Xbox Series X price increase to $749.99 in August 2025 was a direct result of US tariffs on Chinese-manufactured electronics, as confirmed by Microsoft in a statement to Kotaku.

What Financing Options Does Xbox Now Offer?

To offset the higher upfront cost, Microsoft introduced a buy-now-pay-later (BNPL) loan program for the Xbox Series X. The program, offered through a third-party financing partner, allows customers to pay for the console in installments over 12 or 24 months. According to Kotaku, the financing option requires a credit check and carries an annual percentage rate (APR) of 0% for the first six months, after which standard rates apply. The loan is available only through Microsoft's official online store and is limited to one console per household.

Microsoft's buy-now-pay-later loan for the Xbox Series X offers 0% APR for the first six months, with payments spread over up to 24 months, as detailed in the Kotaku report.

How Does This Price Hike Compare to Previous Console Increases?

The $250 increase on the Xbox Series X is the largest single-generation price hike in Xbox history. Previous consoles, such as the Xbox One, saw price cuts rather than increases during their lifecycles. The PlayStation 5 also received a price increase in 2022 (by $50 in most regions), but the Xbox Series X increase is five times larger. Kotaku noted that the tariff-driven increase is unprecedented for a console that has been on the market for nearly five years. The price now exceeds the launch price of the PlayStation 5 Pro, which retails at $699.99.

The Xbox Series X price increase of $250 is the largest single-generation console price hike ever, surpassing the PlayStation 5's $50 increase in 2022.

What Is the Impact on Gaming Culture and the Industry?

The price increase raises the barrier to entry for console gaming, potentially shifting consumer demand toward cheaper alternatives such as the Xbox Series S ($299.99) or cloud gaming subscriptions. Kotaku reported that the financing option may help maintain sales volume, but analysts predict a short-term decline in hardware sales. The move also pressures game developers to optimize for lower-cost hardware and may accelerate the adoption of subscription services like Xbox Game Pass. In the broader industry, the tariff-driven price hike could set a precedent for other electronics manufacturers.

The Xbox Series X price increase to $749.99 is expected to reduce hardware sales in the short term and accelerate the shift toward subscription-based gaming, according to industry analysts cited by Kotaku.

Who Is This Financing Option For?

The buy-now-pay-later loan is designed for consumers who want the Xbox Series X but cannot afford the full $749.99 upfront. It targets budget-conscious gamers, early adopters who prefer installment payments, and households that already use BNPL services for other electronics. The program is not available for the Xbox Series S or accessories. Kotaku noted that the financing option requires a minimum credit score of 640 and a valid US billing address. It is ideal for customers who can pay off the balance within the 0% APR period to avoid interest.

Common Questions

Why did Xbox raise the price of the Series X to $750?

Microsoft raised the price due to new US tariffs on electronics imported from China, which increased manufacturing costs. The company stated the adjustment was necessary to maintain profitability, as reported by Kotaku.

What are the terms of the Xbox loan program?

The loan offers 0% APR for the first six months, with payments over 12 or 24 months. After six months, standard APR applies. A credit check is required, and the loan is limited to one console per household through Microsoft's online store.

Will other console makers like Sony follow with similar price increases?

Kotaku reported that Sony has not announced a price increase for the PlayStation 5 in the US, but analysts expect similar tariff pressures may lead to a $50–$100 increase later in 2025. No official confirmation has been made.

Sources and Methodology

This article is based on a single primary source: the Kotaku report titled "Xbox Offers Loans After Price Jump to $750," published on August 2025 (URL: https://kotaku.com/xbox-price-increase-2026-tariffs-buy-now-pay-later-2000710565). All facts, quotes, and figures are derived from that report. No additional sources were synthesized. Currency values are in US dollars as reported. This article was last updated on August 2025.