Bad news about Xbox prices in South Africa

Microsoft has warned that the recommended retail prices of its Xbox consoles and the price of first-party games will increase in South Africa, along with the rest of the world.

The company announced on Thursday that, effective immediately, it would begin adjusting Xbox console and controller prices in the Xbox Store and provide updated recommended pricing to local retailers.

“Xbox Series S and X availability may continue to change over time depending on the retailer and by country,” Microsoft warned.

“Pricing for our headsets will change in the U.S. and Canada only. Some Xbox controllers, like our Adaptive Controller and Adaptive Joystick, will remain the same price.”

Microsoft said some of its new, first-party games will launch at $79.99 (R1,500, excluding VAT) beginning this holiday season.

The company provided updated prices for several territories, including the United States, the United Kingdom, Australia, and Europe. However, its price adjustments for South Africa had not been published.

MyBroadband contacted Microsoft for details about its planned price increases in South Africa, and a spokesperson confirmed that the information would be released through local retailers.

“Local pricing may differ by country to reflect exchange rates and market conditions,” Microsoft said.

Regarding the price of first-party games, Microsoft said local pricing may also differ across platforms.

“We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development,” Microsoft said.

“Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.”

Microsoft’s announcement came just weeks after rival Sony said it would increase the prices of its gaming subscription services and PlayStation 5 console.

This is a departure from historical trends. Console prices usually come down in the years after release, but this generation has seen the opposite.

U.S. tariff uncertainty

The price increases on Xbox and PlayStation come as uncertainty about U.S. tariffs and an escalating trade war with China create global economic instability.

Neither Microsoft nor Sony explicitly mentioned tariffs as the reason for the price increases, likely because of how politically fraught the subject is.

Sony only pointed very generally to global macroeconomic conditions as the reason for its price adjustments.

“With a backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates, Sony Interactive Entertainment has made the tough decision to raise the RRP of the PlayStation 5 console in select markets,” it stated.

However, economists worldwide from across the political spectrum have warned that tariffs will lead to higher-priced goods for consumers and could lead to another great recession.

“It’s painful to see a ruinous decision from back in the 1920s being repeated,” renowned economist Thomas Sowell said in a recent interview with The Hoover Institution.

“If you set off a worldwide trade war that has a devastating history, everybody loses because everybody follows suit. All that happens is that you get a great reduction in international trade.”

Sowell said the tariffs were disturbing in another sense.

“Franklin D Roosevelt, when he was president in the 1930s, said that you have to try things and if they don’t work, then you admit it, you abandon that, and you try something else until you come across something that does work,” he said.

“Now, that’s not a bad approach if you are operating within a known system of rules, but if you are the one who’s making the rules, then all the other people have no idea what you’re going to do next.”

Sowell said this uncertainty is a formula for getting people to hold on to their money until they figure out what U.S. President Donald Trump is actually planning.

“When a lot of people hang on to their money, you can get results like those during the Great Depression of the 1930s,” he warned.

“If this is just a set of short-run ploys for various limited objectives, limited in time, fine, maybe,” he continued.

“But if this is going to be the policy for four long years, that you’re going to try this, you’re going to try that, you’re going to try something else, a lot of people will wait.”

Regarding the impact on South Africa, the Head of National Debt Advisors, Sebastien Alexanderson, painted a stark picture.

“When the tariffs were first imposed, the rand plunged to historic lows, touching R19.93 to the dollar,” said Alexanderson.

“This pushed up the prices of imported goods and even local essentials like food and fuel. Now, with the pause, we’ve seen the rand pull back slightly, but the bigger picture is about how fragile our economy really is.”

Trump most recently announced a 90-day pause on implementing punitive tariffs on dozens of countries, with the notable exception of China. The 90 days began running on 9 April 2025.

A blanket 10% tariff remains in effect on all goods imported to the United States, with Chinese imports taxed at 125%.