Former Blizzard President says Xbox Console Price Hikes Are “Not Tariff Issues, They Are Profit Issues”

Sep 22, 2025 at 11:30am EDT
Xbox Series S and X with controllers in front, on a plain background.

This past Friday afternoon, Microsoft quietly announced that it would be raising the price for its Xbox Series X/S consoles in the United States, with the Series X getting a $50 increase, the 2TB Series X getting a $70 increase, and the Series S getting a $20 increase starting October 3. It's the second price jump for the Xbox console line this year, meaning that when we finally get to Oct.3, in the US alone, the Series S will have gone up $100, the Series X $150, and the 2TB Series X variant will have jumped up $200 in price.

Many have been quick to point to the current US administration's new tariffs as the real reason behind these price jumps, or as Microsoft puts it, "changes in the macroeconomic environment." According to former Blizzard president Mike Ybarra, however, that's only part of the story.

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In a post on X (formerly Twitter), Ybarra plainly states, "Console price increases are not tariff issues, they are profit issues. And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse."

He further clarifies that he's pointing out that the tariffs only account for one price increase. This second jump in price "is simply a different problem and they are going to make consumers continue to pay for those problems," while tariffs remain "an excuse to continue raising prices."

The tariffs introduced this year are undoubtedly part of the price increases on hardware from Nintendo, PlayStation, and Xbox. But Ybarra isn't exactly wrong to point out that Microsoft raising its prices a second time, and the struggles it faces when competing with PlayStation and Nintendo go deeper and started well before this year's tariffs came into the equation.

About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.

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