Xbox has announced a series of price increases for its consoles, accessories, and a confirmed move to $80 USD for its games later this year. The impact of this decision is profound and extensive, with consequences that will extend beyond third-party game pricing and potentially affect PlayStation consoles as well.
It's fair to say that gaming is now more expensive than it has been since the 1990s. Microsoft revealed that its entry-level console, the Xbox Series S with just over 500GB of storage, now costs $380 USD. That's less than $20 cheaper than a PlayStation 5 Slim Digital Astro Bot bundle on the PlayStation Store. Meanwhile, the 2TB Xbox Series X is now priced at $729, roughly $30 more than the PS5 Pro.
Xbox's announcement comes right after Nintendo's Switch 2 reveal, which made waves with a $450 console price and an $80 price point for select first-party titles like Mario Kart World. Nintendo, which previously sold games for $60, bypassed the $70 standard set earlier this generation by Xbox and PlayStation—which already caused significant backlash—and jumped directly to $80. Now, Xbox is set to follow suit this holiday season, with its own first-party games reaching that same price point, and it seems unlikely that the increases will end there.
Will PlayStation Games Also Cost $80?
All attention is now on Sony to see if it will follow Nintendo and Microsoft in raising prices. It seems almost inevitable that Sony will announce its own hikes in the coming weeks. Rising manufacturing costs and tariffs resulting from the ongoing US trade war mean that Sony must adjust its pricing to reflect current economic pressures.
Even if Sony is less affected by tariffs than Microsoft—which appears to be a driving force behind Xbox's increases—Sony's dominant position in the hardware market means that failing to adjust prices alongside competitors would mean leaving potential revenue on the table.
Beyond hardware, it's even more likely that Sony will raise the price of its first-party PlayStation games. The company has consistently emphasized the premium quality and value of its exclusive titles. Given their ongoing critical and commercial success, Sony is unlikely to price its marquee games below those of Xbox. So, if Microsoft is increasing prices, it's a safe bet that Sony will do the same.
This is not without precedent. Sony remained committed to a $70 price tag for Housemarque’s Returnal, despite fan criticism aimed at what was perceived as a premium price for a digitally-focused studio. Considering the massive production costs behind Sony's biggest first-party titles, an $80 price point feels all but certain.
The Decline of Physical Media
Beyond higher prices for games and consoles, these increases also serve as a strategic opportunity for companies to accelerate a long-term goal: a shift toward digital distribution, subscription services, and the eventual phasing out of physical media.
Digital games and subscription services controlled directly by platform holders like PlayStation and Xbox generate significantly more revenue than physical sales or used game markets. This explains the heavy investment in promoting services such as PlayStation Plus and Xbox Game Pass. While Xbox Game Pass isn't seeing another price increase right now—it already went up in mid-2024—its value proposition strengthens as individual game prices rise. For budget-conscious players, subscribing to Game Pass could offer substantial savings compared to buying even one new $80 game.
As someone who values physical media, it's disheartening to see how price increases are pushing more consumers toward digital storefronts. These changes could speed up the transition to an all-digital future sooner than many expected.
What Does This Mean for GTA 6 and Other Publishers?
There are no more brakes on price escalation. Even before the trade war and since the pandemic subsided in 2023, the gaming industry has faced rising development costs and shrinking profit margins. Industry watchers have long questioned whether the existing pricing model for games and consoles was sustainable. Now, with the PlayStation 5 Pro, Switch 2, and first-party games all seeing increases, those concerns have turned into reality.
With leading platform holders moving firmly toward higher prices, the final confirmation of whether this is a temporary adjustment or a lasting change will likely come with the release of Grand Theft Auto 6 in 2026.
The notion that GTA 6 might launch at $100 started as analyst speculation but has gained momentum across the industry. After investing billions and more than a decade in development, Take-Two will aim to maximize returns on what is arguably the most anticipated game of all time. The company’s CEO, Strauss Zelnick, has previously stated that video games are priced “very, very low” relative to the entertainment value they provide.
When Rockstar finally announces the GTA 6 release date, I fully expect it to be priced at a minimum of $80. That said, not every game will follow this trend—titles like Helldivers 2 and Split Fiction have shown strong demand for more affordable games outside the typical AAA landscape. Many gamers are also willing to skip day-one purchases and wait for sales. One thing is clear, however: prices are heading in only one direction, and for most of us, that means being more selective about the games we choose to buy and play.
