ISLAMABAD: Former Blizzard Entertainment President Mike Ybarra has publicly criticized Microsoft’s decision to announce a second price increase for its Xbox Series consoles in the United States within just two weeks.

Microsoft attributed the price hike, effective October 3, to “macroeconomic conditions” but did not mention any new tariffs. Ybarra challenged this explanation, accusing Microsoft of using tariffs as a pretext to boost profits.

The new pricing raises the Xbox Series S 512GB to $399.99 and the 1TB version to $449.99. Prices for the Xbox Series X have also increased, with the standard model now $649.99 and the 2TB Galaxy Black Special Edition at $799.99.

While the initial price increase earlier this year was linked to new US tariffs, no new tariffs have been introduced since then, prompting questions about the justification for the recent hike. Ybarra acknowledged that the first increase could be explained by tariffs but argued the second hike focuses on profit.

On Twitter, he stated that console price rises are “not tariff issues, they are profit issues,” adding that the underlying problems affecting profits go beyond tariffs. He called the recent price increase “an excuse to continue raising prices, with no new increase in tariffs,” warning that consumers will bear the cost.

The rising cost of gaming has been a concern for both consumers and developers, with hardware, games, and accessories becoming more expensive. Despite tariff-related impacts, Microsoft reported an 18% revenue increase in its latest financial results.

Gamers on platforms like Reddit have expressed scepticism about the stated reasons, some accusing companies of masking corporate greed behind tariff claims and fearing prices may stay high even after economic conditions improve.

Ybarra’s remarks have reignited debates about pricing transparency and fairness in the gaming industry. Some gamers have also considered switching to PC gaming as consoles become less affordable.

Microsoft maintains it is focusing on delivering value and expanding gaming options but has not offered further comments.

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Former Blizzard president criticizes Microsoft over Xbox price hike