Tariff uncertainty causes Microsoft

• The company did not specifically indicate the tariffs, but cited as reasons the “market conditions and the increase in development cost”

Drafting / Change 22

With tariff uncertainty as a backdrop, more and more gamers face price increases. Microsoft increased this week the recommended price for sale to their Xbox consoles and controls worldwide. Its Xbox Series S, for example, now has a base price of $ 379.99 in the United States, 80 dollars more than when it was launched in 2020. And the Xbox Series X will have a retail price of 599.99 dollars onwards, an increase of $ 100.

“We understand that these changes are challenging”Microsoft wrote Thursday in an Xbox support update and in a subsequent statement sent to The Associated press. The company did not specifically indicate the tariffs, but cited as reasons the “Market conditions and the increase in development cost”.

Microsoft also detailed Xbox pricing settings for Europe, the United Kingdom and Australia. The company said that all other countries would also receive locally updates. Some Xbox accessories, including wireless controls, will also be affected, as well as headphones in the United States and Canada. And later, Microsoft said it also foresees that some of its new games are more expensive this Christmas season.

Price increases arrive at a turbulent and uncertain moment for the video game industry, largely due to the new tariffs implemented by the president of the United States, Donald Trump, and the retaliation of the affected countries, particularly China. Economists have warned that higher tariffs will be higher prices in consumer goods that today depend on a global supply chain, including electronic.

And Xbox players are not the first to feel the impacts of these commercial wars. last month, Sony increased its recommended sale price for PlayStation 5 consoles in certain markets, including European, Middle East and Africa, as well as Australia and New Zealand. At that time, the company cited “A challenging economic environment, including high inflation and fluctuating exchange rates”.

Nintendo Switch 2 pre -sale presales were also delayed in April while retailers evaluated the potential impact of tariffs. Nintendo later confirmed that some Switch 2 accessories would have price settings, but indicated that their previously announced base price for the console, $ 449.99, would remain the same.

The initial price of $ 449.99 for Switch 2 is significantly higher than the price of 299 dollars of the original switch. And although new features can represent a considerable part of that increase, experts have previously indicated that new import taxes are also a factor.

Although companies in various industries have already shared weaker perspectives or uncertain for tariff turbulence, the greatest impacts on their final results may not be seen until later. Xbox price increases were announced one day after Microsoft published a solid profit report.

For the quarter from January to March, the company based in Redmond, Washington, registered 70 thousand 70 million dollars in revenue, with net earnings of 25 thousand 800 million. Microsoft also had a 6% increase in the income of its personal computer unit, which includes its Xbox laptops and services business. But that was before many of Trump’s last tariffs came into force.

Source: Process

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