What you need to know
Game consoles are traditionally more expensive in Brazil than in many other countries due to the price of imports on tech.
A report from The Enemy indicates that Microsoft has raised the price of the Xbox Series S in Brazil.
Microsoft is now recommending retailers sell Xbox Series S at R$3,599, which is close to the price of the PS5 Digital Edition.
Microsoft's two-SKU Xbox model strategy is designed to target lower and higher-end price points, but that strategy now looks a fair bit stranger in one country.
News initially broke from Brazilian outlet The Enemy, which received a statement from Microsoft indicating that the price of the Xbox Series S was going up, but not the price of the Xbox Series X.
"At Xbox, we remain focused on offering the best gaming experience at a variety of price points, so gamers can choose what best fits their gaming needs and budget," reads the statement. "In the coming weeks, we will begin to communicate price adjustments for Xbox Series S consoles in Brazil."
"While the console remains an important part of the Xbox ecosystem, we will continue to offer great games, skills and options for gamers in Brazil so they can play how and where they want."
The Enemy notes that prior to this price increase, the Xbox Series S was available between R$2000 and R$2500, but the console will now be listed at a suggested retail price of R$3,599, which is around the retail price of the original PS5 Digital Edition model. This price increase is only applying to the white 512GB Xbox Series S, not the 1TB black model.
When we reached out to Microsoft for comment, the company referred us to the The Enemy's article, confirming the price hike.
Analysis: That's not good
I'm aware that the economy around the world is troubled and different regions have different specific issues, but this seems like a mistake. The gulf between the Xbox Series X and Xbox Series S has been drastically decreased, so it seems far more likely that most players who want an Xbox console will just save up a bit more and go for the higher-end model.