Sony Raises PlayStation Prices Amid Trump Tariffs

Key Facts

Crucial Quote

Joost van Dreunen, a New York University Stern School of Business professor who teaches about the business of video games, told Forbes Sony’s price hike was expected because “tariffs and inflation are forcing hardware makers to adjust,” adding the $50 hike is “meaningful but relatively modest compared to the luxury pricing trend across gaming,” noting the PlayStation 5 Pro was already $700. Van Dreunen said gaming behaves differently than other goods when consumers face economic hardship, stating demand remains strong because people view consoles as “essential entertainment” and will keep buying them “even when other discretionary spending contracts.”

What Other Gaming Consoles Have Hiked Prices?

In May, Microsoft hiked the prices of its Xbox consoles by more than 20% for each edition, citing “market conditions” and “the rising cost of development.” The Xbox Series S with 512 GB of storage cost rose 26% from $299.99 to $379.99, while the Xbox Series X and Series X Digital each rose $100 in price, the digital version from $449.99 to $549.99, and the Series X from $499.99 to $599.99. Nintendo surprised gamers by offering its newly released Switch 2 console for a higher-than-expected price, and it hiked the prices of Switch 2 accessories by $5 to $10 each in April. The Switch 2 console sells for $450, which is 50% higher than the original Switch sold for upon release in 2017. van Dreunen told Forbes the Switch’s $450 retail price was likely set so high to build a buffer to brace for the impact of Trump’s tariffs.

Tangent

Sony’s price hike comes as it grapples with lower console sales. In May, Sony projected it would sell 15 million units of its PlayStation consoles in the coming year, down from 18.5 million sold in the year ending March 2025 and 21 million the year prior. The delay of the highly anticipated “Grand Theft Auto VI” from a fall 2025 release to spring 2026 was also considered by gaming analysts as a blow to console sales. David Cole, CEO of market research firm DFC Intelligence, told gaming publication GamesRadar the game’s delay is a “a real blow to the PS5” because its release was expected to encourage people to upgrade their PlayStation from the fourth edition to the PlayStation 5.

Key Background

Much of Sony’s PlayStation 5 manufacturing takes place in China, The Verge reported. China has been Trump’s primary tariff target, and he has threatened rates up to 145%, though last week he extended a tariff truce between the United States and China that keeps the tariff on Chinese goods at 30%.

Further Reading

Nintendo Surprises With Switch 2 Price Hike—As Trump Imposes Tariffs On China And Vietnam (Forbes)

Microsoft Hikes Xbox Prices—Games Hit $80 And Console Prices Jump More Than 20% (Forbes)