The new US import tariffs, first imposed in April 2025, have evolved rapidly as the products, countries of origin, tariff magnitude, and number of tariffs changed. But one thing is clear: the rapid rollout, quick changing exemptions, and lack of item specific clarity shifted the US macroeconomic environment. 

For the games industry, it appeared on the surface that the tariffs would only impact gaming hardware prices, but in reality foreign exchange rates were also impacted. The US foreign exchange with various major currencies (Euro, GBP, CNY, JPY) has declined, creating a profit headwind for the game industry since the US market accounted for 33% of global console hardware sales and 27% of global game revenue in 2024. Non-US based companies will struggle to achieve financial targets as US operations will contribute less profit margin due to decreases in currency values.

How has the games industry responded to date?

Games hardware producers and publishers are now reevaluating their business positioning and strategies, while a few major firms have already taken measures to improve 2025 profitability. Most of the measures are on the hardware side with a few notable games and services changes. 

Nintendo made a long-term strategic pricing decision for the US Switch 2 console launch, maintaining the Switch 2 price at $450 and forgoing short-term profit for a healthy installed user base. The tariffs will increase the Switch 2 costs since the console is manufactured in both Vietnam and China, but Nintendo will increase accessory prices about 10% to maintain its accessory margins.

Sony’s PlayStation is taking a global multi-product approach to achieving its financial targets. PlayStation increased the PS5 console prices 10% in select international markets (UK, EU, AUS, NZ), but US PS5 and Global PS5 Pro console prices were not impacted. Additionally, PlayStation has increased PlayStation Plus subscription prices in international markets, likely due to profit pressures.

Microsoft’s Xbox took a similar global multi-product approach as PlayStation, but raised US prices since the majority of its revenue and installed based is in the US. However, it also increased console prices 25% globally, and announced a 15% price increase for select first-party games beginning holiday 2025. Xbox Game Pass prices remained unchanged, however, since Microsoft enacted new tiers and pricing for Game Pass in fall 2024. 

Tariffs have not directly affected game publishers but will most likely impact them as consumer spending changes in response to economic trends. Publishers will have to examine their pricing strategies based on title monetisation models. Titles which emphasise in-game & DLC monetisation are more likely to maintain game prices and adjust game economics and engagement to drive profitability. Single player titles, on the other hand, are likely to adjust prices or increase promotional activations to drive sales. 

Electronic Arts confirmed that it is not considering pricing as part of its long-term strategy. Instead, it is focusing on improving game play mechanics to drive engagement and microtransactions. 

Similarly, fellow publishing giant Take-Two confirmed during its investor call that it is focused on delivering value, noting that while pricing is part of its retail strategy, the higher price points are currently out of scope.