Xbox just got another price hike – though this time it’s developers who are affected

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Xbox price hike
(Credit: Adam Vjestica/The Shortcut)
  • 📈 Xbox development kit prices are increasing from $1,500 to $2,000, affecting developers

  • 💰 Microsoft cited “macroeconomic developments” for the price adjustment

  • 🆓 Developers in the ID@Xbox program can still receive two free development kits

  • 🥲 This follows recent price hikes for Xbox consoles and Xbox Game Pass Ultimate

It feels like we can’t go a week without some bad Xbox news at the moment – and now it’s developers who are affected.

After the relatively successful launch of the Asus ROG Xbox Ally X and its more affordable sibling, the Asus ROG Xbox Ally, it turns out the Xbox console division has taken another turn for the worse.

A month after Microsoft announced another price hike for Xbox consoles, the price of Xbox development kits is set to increase from $1,500 to $2,000. It means publishers and studios will have to fork out more if they want to bring their games to Xbox, which could inadvertently affect consumers as it means some titles might skip Xbox altogether.

The news was reported by The Verge, as a memo from Microsoft said the adjustment “reflects macroeconomic developments” but that it remains “committed to providing high-quality tools and support for your development efforts.

Thankfully, studios that are eligible for the ID@Xbox program can reportedly receive up to two Xbox development kits for free. However, it still means it’s another cost for developers to consider, hardly ideal when the cost of game development continues to skyrocket.

The Xbox price change came into effect on Tuesday, October 21, 2025, and will impact US and European developers, along with other regions.

Shortly after raising the price of Xbox consoles, Microsoft also announced that Xbox Game Pass Ultimate would increase by 50%. It’s an expensive time to be a Microsoft fan, then, even if you’re someone who wants to create games for the system.

Up next: How Xbox Game Pass went from ‘the best deal in gaming’ to the worst

Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. He also runs a retro gaming YouTube channel called Game on, boy! Follow him on X @ItsMrProducts.

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