In a shocking announcement this morning, Microsoft said they were raising prices of Xbox consoles and accessories across the board. Citing “market conditions and the rising cost of development,” Microsoft laid out price hikes to their base consoles, raising the price of the Series S 512GB to $379.99 and the Series X to $599.99. The core controller is also going up to $64.99 and the Xbox Wireless Headset is now at $119.99.

Microsoft said they were “[continuing] to focus on offering more ways to play more games across any screen and ensuring value for Xbox players,” despite their need to raise prices. Historically, consoles at the tail end of their generation have seen price drops, with anticipation building for new machines and specs. Given Xbox’s declining hardware sales over the past few years, the future of Xbox hardware has been in doubt for some time, but with Trump’s Tariffs now taking effect, the strain on video game companies is becoming clear.

Additionally, Microsoft also said that the price of certain new first-party games will be rising to $79.99 this holiday season. Nintendo was the first to announce an $80 game with Mario Kart World, citing rising development costs and their belief in the value of the game, so it appears Microsoft is following suit.

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Read Microsoft's statement in full here.