Microsoft has announced a significant price hike for its Xbox consoles, controllers, and select games worldwide, effective immediately. The move is seen as a response to market conditions and rising costs, but it may impact gamers' wallets and the company's market share.

The Xbox Series S (512GB) model will now retail at $379.99, a $80 increase from its previous price of $299.99. The Xbox Series X (1TB) will cost $599.99, up $100 from its original price of $499.99. The Xbox Series S 1TB model will be priced at $429.99, while the Xbox Series X digital edition will cost $549.99. The 2TB galaxy black special edition model will be the most expensive, priced at $729.99.

In addition to console price increases, Microsoft is also raising the prices of its Xbox wireless controllers and headsets. The base controller will now cost $64.99, while the Xbox wireless headset will retail at $119.99. These prices are already available in some markets, but the official price hike takes effect today.

Select new Xbox games will also see a price increase, moving from $69.99 to $79.99 later this year. This move mirrors Nintendo's pricing strategy for its top Switch 2 launch titles. However, Xbox Game Pass subscribers can breathe a sigh of relief, as the company has confirmed that the subscription service will not see a price increase.

The price hikes will not be limited to the US market, with European countries, including the UK, and markets like Australia also affected. In Europe and the UK, the Xbox Series S (512GB) will now cost €349.99 / £299.99, while the Xbox Series X (1TB) will retail at €599.99 / £499.99.

This is not the first time Microsoft has raised the prices of its Xbox consoles. In June 2023, the company increased the price of its Xbox Series X console, citing rising costs and market conditions. The move was seen as a response to Sony's price increase for its PS5 consoles in Europe and the UK earlier this month.

Despite the price hikes, Microsoft's gaming division appears to be performing well. During the company's Q3 fiscal earnings call, CEO Satya Nadella revealed that Microsoft "ended the quarter as the top publisher by preorders and preinstalls on both Xbox and PlayStation Store." The company also saw a 45% year-over-year increase in PC Game Pass revenue.

The price increases may have significant implications for the gaming industry, particularly in the midst of a global economic downturn. Gamers may be forced to reassess their spending habits, and Microsoft's competitors may see an opportunity to capitalize on the price hikes. As the gaming landscape continues to evolve, it remains to be seen how Microsoft's price increases will impact the market and the company's bottom line.