Hey there Legend! Just to bring to your notice that some links and ad banners on this page are affiliates which means that, if you choose to make a purchase, we may earn a small commission at no extra cost to you. We greatly appreciate your support!
Sticker Shock for Game Studios as Microsoft Raises Xbox Dev Kit Price by 30%
October 23, 2025Xbox game development just got a lot more expensive: Microsoft has hiked the price of its Xbox Development Kit from $1,500 to $2,000 per unit. That’s a hefty 30 percent jump, and it’s hitting developers worldwide starting right now.
Microsoft informed studios of the change, pointing to “macroeconomic developments” as the reason. The company insists it still stands behind its game-making community: “We remain committed to providing high-quality tools and support for your development efforts”, reads the official notice.
Another Price Hike in the Xbox Ecosystem
This latest developer fee increase isn’t coming out of nowhere. Xbox has seen several price bumps in recent months, and not just for the dev kits.
Back in October, Microsoft raised the price tags on both its Series X and Series S consoles in the US. The Series X, with a disc drive, now costs $649.99, up by $50 overnight. Meanwhile, Game Pass Ultimate, the flagship subscription for Xbox, has surged by over 50 percent in the UK, where users now pay £22.99 per month. The PC Game Pass also saw increases, though not every country has been hit yet.
For developers, the Xbox dev kit has always been a serious investment. Unlike consumer consoles, these kits are packed with extra hardware so studios can test their games on both the Series X and Series S. That means a higher base price before the recent hike. Now, some studios will be forced to stretch shrinking budgets even further just to get new projects started.
Microsoft Profits Climb as Costs Rise for Creators
What’s particularly striking about the timing? This price shift for developers comes right after a stellar season for Microsoft. In July, the company reported record-setting revenue from subscriptions, thanks to Game Pass. CEO Satya Nadella wasn’t shy about the company’s momentum, stating: “Microsoft is thriving”.
Those chart-topping profits, however, came just after major layoffs across the business. Boosting development costs now adds a new layer of complexity for smaller indie teams and even big-name studios that need multiple kits for expansive projects.
Developers in Europe and other regions are also impacted immediately, not just those in the US. The global reach of this price change means the pain is being felt far and wide in the industry.
Ultimately, it’s a tough time for studios hoping to bring fresh ideas to Xbox gamers. Between pricier hardware, expensive subscriptions, and now a steeper bill for essential dev kits, the old slogan about Xbox being the “Best Deal in Gaming” is starting to sound a bit hollow.
Share this:
While games are fun, it’s highly important to note that there’s more to life than sitting countless hours playing video games – there’s a purpose and more to life; seek out that purpose more often!
