On April 14th, Sony announced that it was raising the price of some PS5 console versions in the UK and EU by £ 40/€40. It has not done the same in the United States yet, but we will address that issue later.
Nonetheless, Sony referenced “challenging” market conditions. While it did not mention the tariffs imposed by US President Donald Trump, it is implicit that the price hikes are partly due to that. This is the second time Sony has hiked prices of the PS5; the first time was back in 2022 when global inflation was at its peak.
The situation is undoubtedly complicated. Japan has been hit with 26% tariffs on exports to the United States, although their implementation is currently paused. Part of the issue is that mixed messages are coming from the White House, with some suggestions of exemptions for electronic goods coming from Asia.
Tariff pauses have complicated the situation
As mentioned, the price of a PS5 in the US has not been increased – yet. There are two competing theories. First, Sony (and Japan in general) is arguably trying not to be seen to be retaliating. Countries are flocking to negotiate with the US during this period of pausing of (most of) the tariffs.
The second theory is a concept called “global cost redistribution.” The US is the largest market for PlayStation, so if Sony hikes prices elsewhere, that can help mitigate the blow of tariffs on US sales without raising prices dramatically. Of course, Sony isn’t the be-all and end of all of the gaming world. Many gamers enjoy playing without worrying about the cost of consoles and AAA games. From inexpensive titles on PC to exciting mobile games to free-to-play social casino games, the options are endless.
Price rises may impact the global gaming sector
Yet, what’s happening with Sony can be a barometer for the wider market, and it is possible that this is just a taste of what is to come. For many gamers, things could get more expensive.
While Sony is naturally grabbing the headlines, consider how the gaming industry has become increasingly globalized. Your favorite indie game might be developed by a studio in Seattle, but think of all the different elements – GPUs, semiconductors, controllers, gaming chairs – that rely on global supply chains. Even if deals are made on tariffs on items like these, rises in inflation caused by tariffs on other products may increase costs due to wage rises, etc.
Game development is increasingly global, too, with many parts of the labor used to create games outsourced to various countries around the world. As we said, the situation is complicated, but if one element of the gaming ecosystem sees costs rise, it can have a knock-on effect on the price you pay for your game. Subscription services, which have been fairly commendable for keeping costs down, may also be impacted.
None of this is meant to sound like a prediction. The situation is both fluid and complicated. Right now, there is a sense that President Trump has taken a step back to assess what has happened to the US bond and stock markets, but there is a chance that the turmoil is renewed, even heightened.
Gamers will have to wait and see how this is resolved, but nobody should be truly surprised to see the cost of their favorite pastime rise dramatically in the coming months.
For the latest gaming news, follow GameWatcher on BlueSky, check out our videos on YouTube, or give us a like on Facebook. We sometimes include affiliate links in our posts, which grants us a small commission, thank you.
