“It’s not the tariffs,” said the former Blizzard president, arguing that the Xbox Series X|S price hike comes down to profitability issues rather than external economic factors.

The gaming industry isn’t in a great place for consumers right now, and players have every reason to be upset. Microsoft recently confirmed another price hike for the Xbox Series X|S in the United States. This move pushes the Series X into the $600–$800 range, while the Series S now costs between $400 and $450.

Mike Ybarra Refutes Microsoft’s Explanation

Many players argue that these new prices are far higher than those seen in 2020. Microsoft defended its decision by pointing to the “macroeconomic environment” and tariffs. But Mike Ybarra, former Blizzard president and longtime Xbox executive, challenged that narrative. In his view, the increase has nothing to do with tariffs—it’s about profit margins.

“Console price increases are not due to tariffs, they are due to profits,” Ybarra wrote on X/Twitter. He added: “And the reason profits aren’t where they should be is a much deeper issue than the tariff excuse.”

Console price increases are not tariff issues, they are profit issues. And the reason why profits are not where they should be is a far, far deeper issue vs. the tariff excuse.

— Mike Ybarra 😇 (@Qwik) September 19, 2025

His stance directly contradicts Microsoft’s official line, which blames outside economic pressures. Still, the same logic could apply to Sony, which raised PS5 prices in the U.S., and Nintendo, which did the same with its Switch consoles. Of the three console makers, though, Microsoft may be hit the hardest, as its hardware sales are already declining—and this controversial move may only accelerate the trend.

Even so, Microsoft’s multiplatform strategy and the continued expansion of Xbox Cloud Gaming might help soften the blow. The question is whether players will accept the higher prices or remain bitter over what many see as a profit-driven move.

Source: 3djuegos