Former Blizzard President Claims Xbox is Using Tariffs as Justification for Price Hikes

Mike Ybarra, the former president of Blizzard, has voiced strong criticism against Microsoft’s recent price hike of Xbox consoles in the U.S. He claims that these increases are more about profit than tariffs.

Last week, Microsoft announced its new prices, citing “changes in the macroeconomic environment.” But Ybarra didn’t buy that explanation. He took to social media to express his concerns, emphasizing that the issues affecting profits run much deeper than tariffs. His comments suggest a more complex situation behind the price hike.

In a follow-up post, Ybarra pointed out that the price increase last May was warranted due to rising tariffs at that time. However, he believes this latest hike lacks a valid reason. “An excuse to continue raising prices, with no new increase in tariffs, is simply a different problem,” he stated. He emphasizes that consumers are being burdened by these rising costs.

Currently, the Xbox Series X retails for $649.99, while the digital version is priced at $599.99. The Series S comes in at $399.99 for the 512MB model and $449.99 for the 1TB model. With consumers feeling the squeeze, some have taken to social media to express frustration over the rapid price changes in a competitive market.

Interestingly, while Microsoft raises prices, it has also reported an 18% revenue boost during its most recent earnings call. Xbox Game Pass alone has generated nearly $5 billion in annual revenue. This raises questions about the need for such a price increase when the company is already seeing significant earnings.

It’s worth noting that Sony has also raised its PS5 prices in the U.S. The base PS5 now costs $549.99, while the digital edition goes for $499.99, and the PS5 Pro is priced at $749.99. This trend of price hikes across major console makers could signal shifting market dynamics and consumer reactions may influence future pricing strategies.

In summary, while economic conditions are cited for these price adjustments, experts like Ybarra argue that the underlying issues are more complex. The gaming industry is watching closely as players react on social media and the market adjusts to these new prices.

For more on this topic, you can check out [Bloomberg’s analysis on gaming industry trends](https://www.bloomberg.com) and gain a deeper understanding of the market forces at play.

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