PlayStation 5 Faces Potential Price Surge Due To U.S. Tariff Rise

In a move that has gamers scratching their heads, Nintendo has put off pre-orders for the highly anticipated Switch 2 in the U.S. The decision was made because of upcoming changes to U.S. tariffs that will have a big effect on the prices of imported goods, such as game consoles. 

The United States imposed a 10% tariff on all goods from other countries on April 5, 2025. As of April 9, imports from 60 countries will also be subject to even higher taxes. Most notably, goods made in China, which include most gaming hardware, will be subject to a shocking 54% tariff rate.

This tariff affects many things, not just games, but the effects on consoles like the PlayStation 5, PlayStation 5 Pro, and Switch 2 are especially bad. The PS5, which is mostly made in China, could see a big increase in its retail price, up to $750, and the PS5 Pro could go as high as $1,350. Even though these numbers haven't been confirmed, it's looking increasingly likely that prices will go up.

This decision puts a rare pause in the excitement before the launch of a major piece of hardware, Nintendo Switch 2. It shows how uncertain U.S. trade policy is and how that affects the gaming industry. At the same time, Sony seems to have taken steps to protect its current-gen PlayStation 5 consoles from the first round of tariffs. By making its supply chains twice as big and stockpiling PlayStation 5 in the U.S., the company has some extra time. Analysts warn, though, that this is only a short-term fix.

Sony might also have to raise prices once they run out of consoles and accessories unless they can move production to countries with lower tariffs, like Japan. Even though moving production to Japan could lower the tariff rate to 24%, U.S. consumers will still have to pay more. Sony will have to look at their profit margins again and decide how much of the higher costs will be passed on to customers. This could affect consoles, games, and accessories.

PlayStation is now in the middle to late stages of its lifecycle, where Sony is making money per unit. The PS5 Pro also costs around $700, which means that the price was probably set with the expected effect of tariffs in mind. In other words, price increases may not be as big as people thought they would be.

Still, the gaming industry is going through some rough times right now. Companies all over the world have to make tough choices, like stopping pre-orders or rethinking whole manufacturing systems. Sony's foresight gives the industry a short-term boost, but trade policy still has the potential to have big effects on the whole sector.

As time passes, both gamers and industry observers will pay close attention to how companies react. The next few months could show whether video games in the U.S. will stay cheap or whether the console wars are about to get much more expensive.