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Xbox prices and sales soar as consumer appetite for tech stays high

The news: Despite its $999.99 price tag, the ROG Xbox Ally X is selling out, showing there’s still strong consumer interest in on-the-go gaming experiences. Preorders for the handheld gaming console sold out Friday, per Xbox.

Price creep: Xbox console prices are inching up at a not-so-subtle rate—with two price bumps this year—undercutting the old adage that waiting to purchase until post-launch leads to lower costs.

  • The Xbox Series S (512 GB) launched at $299 in 2020 and will jump to $399.99 October 3, a 33.8% hike.
  • The Xbox Series X debuted with a $499 sticker price in 2020 and will rise to $649.99 in October, a 30.3% price increase.

Considering value: Rising prices don’t appear to be derailing holiday tech budgets amid softening consumer spending.

The average US consumer plans to spend $931 on tech devices this holiday season, per CNET. While shoppers are still spending, they’re also scrutinizing value more than ever. Consumers’ anxieties, about both the macro economy and individual products, include:

  • Tariffs and rising prices (52%).
  • Finding quality tech at affordable prices (48%).
  • Availability due to shortages or lack of inventory (23%).

Beyond consoles: The appetite for on-the-go gaming experiences is expanding into new arenas. LG Electronics is integrating Xbox into its in-car infotainment systems, letting passengers play games on the road, per Engadget. Gaming is no longer tied to the living room and is becoming a lifestyle touchpoint.

What this means for brands: Consumers are willing to spend—but only if products can justify prices. Price creep without clear upgrades could alienate even high-budget spenders.

Companies should:

  • Bundle experiences, not just hardware. Pair consoles with free months of cloud gaming or premium subscriptions to ease sticker shock.
  • Lean into mobility. Highlight how such devices fit into consumers’ increasingly active lives.
  • Address pricing head-on. Don’t hide price hikes and be clear about company rationale, as transparency builds trust.

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