Xbox Series X in white (left), black (middle), and the Galaxy Black Special Edition (right). (Image source: Microsoft)Mike Ybarra has shared his disapproval of the second price hike and called it unjustified. He believes that the company is making its consumers pay for problems of unsatisfactory profits.
Microsoft announced last week (September 19) that it will be raising prices for its Xbox consoles in the US. This is the second price hike following the one in May due to tariffs. While Microsoft has cited the macroeconomic conditions for the second price hike, a former VP disagrees and says the company is using tariffs as an excuse for raising prices due to unsatisfactory profits.
Starting October 3, the $20 to $70 price increase (depending on the model) will take effect, only for the US market. The standard Xbox Series X will go from $600 to $650, while the entry-level Xbox Series S jumps from $380 to $400. The Galaxy Black Special Edition will go from $730 to $800. Microsoft cited “changes in the macroeconomic environment” as the reason for the price hike, not specifically mentioning tariffs.
Shortly after the announcement, former corporate vice president of Microsoft’s gaming division, Mike Ybarra, posted on X that the price hike is not a tariff issue, but a profit issue. “And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse,” he added.
Ybarra followed up by saying that the first price hike was justified because of the tariffs but the second price hike has to do with a different problem that Microsoft is facing. His issue with the announcement is that the company has chosen to ask consumers to pay extra to compensate for its own console and ecosystem strategy that has brought a decline in console demand.
Regardless, those who were looking to buy an Xbox Series console have until October 2 to get the standard pricing, after which all retailers will start showing the increased price tags.
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Vineet Washington – Tech Writer – 461 articles published on Notebookcheck since 2025
I have always been passionate about gaming and technology, which drove me towards pursuing a career in the tech writing industry. I have spent over 7 years in the tech space and about a decade in content writing. I hope to continue to use this passion and generate informative, entertaining, and accurate content for readers.
Vineet Washington, 2025-09-23 (Update: 2025-09-23)
