Lawyers representing Sony and Microsoft have argued, in two separate lawsuits, that the platform holders are not obligated to pass tariff refunds back to consumers. Sony and Microsoft have had to raise prices of their PlayStation and Xbox consoles in 2025 in response to US-imposed tariffs. The US Supreme Court ruled the tariffs illegal earlier this year, allowing impacted companies to request refunds.
Both Sony and Microsoft will receive refunds, but consumers who paid higher prices for their products as a result of the tariffs will not be compensated. As the two companies are being sued separately by affected consumers who say they should receive refunds
In Sony’s case, brought against it by a group of players in California, the company used a familiar line of argument that essentially said consumers got what they paid for.
“Paying fair market price for voluntarily purchased consumer goods is not a legally cognisable injury in fact,” Sony argued in a legal motion. The company is seeking to dismiss the suit early before it could turn into a class-action lawsuit.
Microsoft’s case was initiated by one individual in Washington State, who is likewise seeking a refund. Once again, the company’s argument against the suit is familiar.
“There is nothing unjust about Plaintiff purchasing an Xbox at an advertised price and getting exactly what he paid for – regardless of whatever theory he devised months later about Microsoft’s cost structure,” Microsoft’s lawyers argued.
“Plaintiff provides no specific allegations that would establish any pricing differential attributable to tariffs or suggest any possibility that Microsoft applied then or could recreate now any dollar-for-dollar calculation of tariff-related pricing – any more than it could any other market factor that affects pricing,” Microsoft’s argument went on.
It’s notable that neither Sony nor Microsoft directly named tariffs as the reason they’re raising console prices. When Sony raised PlayStation 5 prices in August 2025, the company cited “a challenging economic environment”. Microsoft’s Xbox price hikes in May of the same year came alongside a statement about “market conditions and the rising cost of development”.
The arguments echo those made by Nintendo, who’s facing its own lawsuit about the same claim. Nintendo also said in July that it was under no obligation to pass tariff refunds to consumers who bought Switch consoles at elevated prices.
In all cases, consumers are frustrated that companies get paid twice, once by those who buy the price-hiked consoles and another when tariffs are refunded. In July, Sony told investors it’s expecting $508m (£375m) in tariff refunds from the US government, with most of that going to PlayStation. Indeed, none of the three companies have lowered prices in response to the tariffs getting struck down, meaning they will continue to benefit from the elevated prices. In all lawsuits, a judge has yet to rule in favor of the arguments made by Sony, Microsoft or Nintendo, as Game File notes.
Though the big three may be adamant they don’t owe consumers any refunds, some companies are passing the refunds back to their customers. Playdate maker Panic recently announced anyone who bought its handheld console while the tariffs were in effect will be refunded the difference. Earlier in August, PC cooling company Arctic promised to do the same, and reduce the prices of its products for a period of time, too.
