That is correct, a price hike on Xbox hardware amid an earnings call that sees hardware earnings decrease and first-party games earnings increase slightly. Is this due to the new tariff uncertainty that is happening in the US or is this Xbox’s way of putting a focus on Game Pass? Let’s talk about it.
Tariffs tariffs tariffs, the word that has Xbox and Microsoft alike all turned upside down following the price hike on all the hardware to do with the console! Prices are affecting the Xbox Series X and S alike and right down to the headsets and controllers. Prices are being raised as we speak and this is due to the US tariffs that are being imposed which have a direct effect on what Xbox can and can’t sell items for. The increase in question is an increase of roughly $80-$130!
The earnings call previously mentioned as per Destin Legarie on X, formerly Twitter, Destin (@DestinLegarie) / X Xbox content and services revenue increased 8% (up 9% in constant currency), Gaming grew 5% and Xbox hardware declined 6%. Does this mean that Xbox hardware isn’t a top seller or does this mean that people who have access to the Xbox first party games are happy with the games being released to us, whether that be by Game Pass, PC Game Pass or being sent over to PlayStation?
Following on from this, Xbox has solidified itself and looks to bring itself onto LG devices such as TVs to enable gamers to have more direct access to the services offered. Moving towards Game Pass, the 8% of content and services revenue is being driven by growth in Game Pass, Call of Duty and Minecraft. Along with this, PC Game Pass increased by over 45% as per the latest statistics, and cloud gaming hit a record of 150 million hours played in the quarter.
So, does Xbox look to have solidified itself as a gaming market staple or do they look to increase overall players coming to Game Pass with a plethora of titles as first party releases? You be the judge. Let us know in the comments below!
