Product Launch - Meta and Microsoft partnered to release a limited edition Meta Quest 3S Xbox edition VR headset for $399 [1] - The VR headset features Xbox green and carbon black styling, mirroring Microsoft consoles [1] - The bundle includes a custom-look Xbox controller and matching Touch Plus controllers [1] - The headset launches directly into the Xbox app, enabling streaming of Xbox games with a Game Pass Ultimate subscription [2] - Users can play Xbox games on a 26 ft (approximately 7.92 meters) virtual display [2] Market Availability - The limited edition Xbox VR headset is available for sale in the US and the UK [2]

Group 1 - Microsoft is launching the ROG Xbox Ally handhelds, marking the first time Xbox has released a handheld gaming device [1] - The handhelds, developed in collaboration with ASUS, provide a full-screen Xbox experience for portable gaming [1] - Players will have access to Xbox games, streaming content, and cloud gaming capabilities on the go [1] Group 2 - The announcement of the handhelds follows the recent launch of Nintendo's Switch 2, indicating a competitive shift in the portable gaming market [2] - Microsoft emphasizes an approachable gaming experience with unique features on both devices [2]

Core Points - Microsoft has raised the recommended retail pricing for Xbox consoles and controllers globally, effective May 1, and plans to increase the price of new first-party games during the holiday season [1][4] Pricing Changes - The price of the Series S 512GB console has increased by $80 to $380, while the Series X console has risen by $100 to $600 [4] - Certain games will see a price increase of $10, bringing their price to $80 [4] - Pricing for Xbox headsets will change only in the United States and Canada, with some Xbox controllers remaining at the same price [2] Market Conditions - Microsoft acknowledged that these pricing changes are challenging and were made after careful consideration of market conditions and rising development costs [2] - The company did not confirm if U.S. tariffs influenced the price hikes, but it relies on overseas manufacturing, including in China [3] Retailer Responses - Executives from major retailers, including Walmart and Target, indicated that maintaining low prices amid tariffs is becoming increasingly difficult, and some products may become scarce if retailers opt not to sell them due to tariff costs [4][5] - Retailers have taken measures to manage tariffs, such as Walmart halting some holiday orders from Chinese manufacturers and Target pausing shipments from direct Chinese suppliers [5] Impact on SMBs - Small to medium-sized businesses (SMBs) are facing tough decisions as they seek ways to share, offset, or avoid costs, risking their competitiveness against larger rivals [6]