Overview

• The Consumer Technology Association (CTA) projects U.S. video game console prices could rise by up to 69.4%, with an average increase of $428 per unit, if the tariff pause ends on July 9.
• A universal 10% tariff on tech imports and a 145% duty on Chinese-made goods, implemented in April, are driving these cost pressures, as 87% of consoles are manufactured in China.
• Microsoft has already increased U.S. Xbox Series X prices by $100 and Series S by $80, while Sony raised PS5 prices in Europe and the UK, signaling broader pricing adjustments across the industry.
• Nintendo delayed and later reopened U.S. Switch 2 pre-orders at the same console price but increased accessory costs, warning of potential future price changes due to economic conditions.
• The CTA warns that higher tariffs could lead to a $12 billion loss in consumer spending power and a 73% drop in console purchases, potentially disrupting the broader gaming ecosystem.