May 9 2025 – The Consumer Technology Association (CTA), the organizer of the renowned CES tech expo, has issued a stark warning about the potential price hikes of gaming consoles in the United States due to new tariffs proposed by the government. The CTA’s latest assessment report delves into a wide range of consumer electronics, encompassing gaming consoles, laptops, tablets, smartphones, monitors, computer accessories, and connected devices.
According to a report from Tom’s Hardware today, the CTA’s analysis suggests that if the current tariff suspension is lifted in July and the existing tax rates are enforced, American consumers could witness a broad-based increase in the prices of consumer electronics. Notably, desktop computers are projected to see a 24% price hike, while smartphones could surge by 30.8%. The most alarming projection, however, is for gaming consoles, which might experience a staggering 69.4% price increase.
Given that 87% of gaming consoles are sourced from China, imposing a 145% tariff could drive up the average price of each console by 428.TheCTAestimatesthatthiscouldleadtoaroughly12 billion reduction in the overall purchasing power of American consumers within the gaming console market.
Even before the full implementation of the tariff policy, gaming console prices have already started to climb globally.
Microsoft announced last week that it would be raising the prices of its Xbox consoles worldwide. In the United States, the 1TB Xbox Series X will see its price jump from 499to599, while the 2TB version will escalate from 599to729. The Xbox Series S will also witness an $80 price increase.
Similarly, Sony revealed last month that it would be increasing the price of the PS5 for the second time in certain regions. In Europe, the digital edition of the PS5 will rise from 449to499 (after previously being priced at 399),whileintheUK,itwillclimbfrom389.99 to $429.99.
The United States remains one of the few countries that have not yet been affected by the PS5 price increase. However, if the global tariffs take effect as scheduled in July, the future pricing trajectory remains uncertain.
Nintendo, too, has felt the pinch of economic uncertainty in the United States. The company had initially planned to open pre-orders for its next-generation Switch 2 console in the US, but these plans were postponed due to the economic climate.
Ultimately, Nintendo officially launched pre-orders for the Switch 2 in the US in late April. While the console’s base price remained unchanged, the prices of some Switch 2 accessories were increased. The company also cautioned that further price adjustments for other products might be on the horizon, depending on market conditions.
