PS Cuts Prices as Xbox Rises Over Tariffs

The looming threat of fluctuating tariffs is already making waves in the gaming industry. Companies are either pulling products from U.S. retailers or adjusting prices to cope with rising costs. Interestingly, industry giants Sony and Microsoft are adopting starkly different strategies in response.

How Sony Is Handling Tariff Pressures

Following the implementation of the Trump administration's reciprocal tariffs on April 5, Sony increased PS5 prices across Europe, the UK, Australia, and New Zealand, citing "economic challenges like high inflation and currency fluctuations." This marks the second PS5 price hike in three years, though U.S. prices have remained untouched—for now.

Sony CFO Lin Tao recently hinted at potential U.S. adjustments, noting the company is monitoring market conditions and may shift price and shipment burdens to consumers. As a buffer against short-term tariff effects, Sony has stockpiled a three-month supply of PS5 units in the U.S.

With tariffs potentially costing Sony up to $685 million annually—and the U.S. accounting for 40% of PlayStation's global sales—price increases stateside appear inevitable.

PlayStation Days of Play Brings Temporary Relief

In a counterintuitive move, Sony recently slashed prices during its Days of Play sale, offering record discounts on consoles, accessories, and hit titles—including the PSVR2 at its lowest price ever.

PS5 Pro Console

6$699.99 save 7%$649.00 at Amazon

PS5 Console Disc Edition - Call of Duty: Black Ops 6 Bundle

10$569.98 save 21%$449.99 at Target

PlayStation DualSense Edge Wireless Controller

3$199.99 save 15%$169.00 at Amazon

God of War Ragnarök (PS5)

4$69.99 save 57%$29.83 at Amazon

Astro Bot (PS5)

4$59.99 save 17%$49.94 at Amazon

PSVR 2: Horizon Call of The Mountain Bundle

8$399.99 save 13%$349.00 at Amazon

With economic uncertainty causing consumers to tighten budgets, these deep discounts may represent Sony's final push before impending price jumps. The Days of Play sale concludes June 11, and with 145% tariffs on Chinese goods returning August 12, it could be the last major sale before holiday shopping season.

Microsoft's Preemptive Price Strategy

Microsoft took a radically different approach, implementing sweeping price hikes across its Xbox hardware lineup in May—a proactive move ahead of expected tariffs. Though a U.S. company, Xbox manufacturing primarily occurs in China, compelling Microsoft to protect its already narrow console margins.

This decision comes as Xbox struggles against PlayStation's dominance, with PS5 sales doubling Xbox Series X volume. Remarkably, Xbox Series X|S combined sales trail behind Xbox One's performance in the same timeframe. The price increase appears particularly questionable as Sony discounts its premium PS5 Pro while Microsoft raises prices.

The entry-level Xbox Series S now starts at $380—making Sony's $450 Call of Duty PS5 bundle seem compelling. The flagship Series X saw a $100 increase to $600, while the newer PS5 Pro at $700 suddenly appears competitively priced, especially considering Xbox's 2TB model now exceeds the PS5 Pro's cost.

Compounding concerns, Microsoft confirmed first-party game prices will rise to $79.99 this holiday season—following Nintendo's controversial $80 Mario Kart World pricing. While PlayStation hasn't matched these increases yet, analysts predict industry-wide adoption if economic conditions persist.

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