Sony and Microsoft follow Nintendo in refusing to pass tariff refunds to console buyers
Sony and Microsoft have both filed legal motions arguing they are under no obligation to pass US tariff refunds back to consumers who bought PlayStation and Xbox consoles at elevated prices. The two platform holders, facing separate lawsuits from customers, are using arguments that closely mirror the one Nintendo deployed in its own case earlier this year.
The background to the dispute is straightforward. Both companies raised console prices during 2025 in response to tariffs imposed by the US government. Those tariffs were later ruled illegal by the US Supreme Court, which opened the door for affected businesses to claim refunds. Sony and Microsoft are both expected to receive money back from the government, but the consumers who paid the higher prices will not see any of it unless the courts side with them. The arguments in court
In Sony’s case, a group of players in California has brought a proposed class action. The company has responded by asking the court to dismiss the suit before it can proceed, arguing that paying a fair market price for a voluntarily purchased consumer good does not constitute a legally recognisable injury. Sony has also pushed back on the suggestion that tariffs were the reason for the PS5 price increase in the first place, describing that claim as speculative and illogical. The company points out that console prices went up again this year, after the tariffs had already been terminated, and argues that if tariffs were the true cause of the original rise, prices would have fallen once they were removed rather than climbing once more.
Microsoft’s case was initiated by a single individual in Washington State. The company’s lawyers have argued that there is nothing unjust about a customer buying an Xbox at an advertised price and receiving exactly what they paid for, regardless of any theory the buyer later devised about Microsoft’s cost structure. They have also said the plaintiff has not provided specific allegations showing any pricing differential that could be attributed to tariffs, nor any suggestion that Microsoft could recreate a dollar-for-dollar calculation of tariff-related pricing any more than it could for any other market factor affecting price. Echoes of Nintendo
The language used by both companies is strikingly similar to Nintendo’s own defence. Nintendo requested a dismissal of its proposed class action back in July, after consumers alleged that the company stood to recover the same tariff payments twice – once from customers through higher prices and again from the federal government through refunds. Nintendo argued that buyers received exactly what they bargained and paid for when they purchased price-hiked Switch consoles, and that anyone unwilling to pay the advertised price was free to abstain or seek out competing products.
Neither Sony nor Microsoft has directly named tariffs as the reason for their price increases. When Sony raised PlayStation 5 prices in August 2025, it cited a challenging economic environment. Microsoft’s Xbox price hikes in May of the same year were accompanied by a statement about market conditions and the rising cost of development. What consumers stand to lose
The frustration for consumers is that companies appear set to benefit twice: once from the higher prices paid by those who bought consoles during the tariff period, and again from the refunds paid by the US government. In July, Sony told investors it expected to receive $508m in tariff refunds, with most of that sum going to its PlayStation division.
The legal cases are still ongoing, and no court has yet ruled on whether the platform holders’ arguments will hold up. But the consistent stance across all three companies suggests that customers hoping for a refund without a fight will be disappointed. The dispute also arrives at a time when gaming hardware costs are under pressure from other directions, including rising memory prices, which analysts say could push the affordability of future consoles further into question.
For now, the key question – whether consumers who paid inflated prices during the tariff period are entitled to any of the money their purchases helped generate – rests with the courts. Sony, Microsoft and Nintendo have each made clear they believe the answer is no.