Following Nintendo’s example, Sony and Microsoft argue they have no obligation to pass tariff refunds onto customers
Sony and Microsoft are arguing in court that they have no legal obligation to pass tariff refunds to consumers, following similar positions taken by Nintendo. Both companies raised console prices in 2025 in response to US-imposed tariffs on imported goods. After the US Supreme Court ruled these tariffs illegal in February 2026, companies became eligible for government refunds—Sony alone expects to receive approximately $500 million, with the majority flowing to its gaming division.
Consumer class-action lawsuits have been filed against both platform holders, alleging they should distribute at least a portion of these refunds to customers who paid inflated prices. Lawyers for Sony and Microsoft have filed motions to dismiss these suits, arguing that consumers are not entitled to compensation. Sony’s legal team characterized consumer claims as “speculative and illogical,” contending that “paying fair market price for voluntarily purchased consumer goods is not a legally cognisable injury.”
Consumers argue that the companies have been compensated twice: once through the higher prices they charged during the tariff period, and again through government refunds. However, both companies maintain they are under no obligation to pass the windfall to consumers. This situation reflects broader cost pressures in the gaming industry, where console prices have climbed significantly over recent years, adding to the financial burden on players.
Sources
- Following Nintendo’s example, Sony and Microsoft argue they have no obligation to pass tariff refunds onto customers
- Sony and Microsoft request dismissal of consumer lawsuits over tariff refunds
- Sony And Microsoft: We’re Keeping Tariff Refunds For Ourselves And You’ll Get Nothing
- Sony Says It Won’t Pass Tariff Refunds Back to PlayStation Customers, and Dismisses Fan Arguments as ‘Speculative and Illogical’
- Sony and Microsoft Say Gamers Aren’t Owed Tariff Refunds
- Both Microsoft and Sony say they’re under no obligation to pass tariff refunds on to customers