Sony and Microsoft have asked US courts to dismiss class-action lawsuits accusing the companies of failing to pass tariff refunds on to consumers after raising prices of PlayStation and Xbox consoles.
The lawsuits were filed following 2025 price increases for PlayStation 5 and Xbox consoles. Consumers allege the increases were linked to tariffs imposed by the US government and argue that they should receive refunds after the US Supreme Court ruled that the tariffs were illegal.
According to GamesIndustry.biz, Sony has asked a federal judge in California's Northern District to dismiss the case, arguing that it has no legal obligation to pass tariff refunds on to customers.
Sony's lawyers described the claim that tariffs were responsible for the console price increases as “speculative and illogical.” They pointed to several other factors that can influence pricing, including inflation, currency fluctuations, component costs, logistics, competition and consumer demand.
The company also highlighted the fact that it implemented additional hardware price increases after the tariffs were declared illegal.
“If the original price increase were attributable to tariffs, SIE would have had no reason to raise prices again after the Supreme Court invalidated the IEEPA tariffs,” Sony argued, according to the global video games industry news website.
Sony further said that if tariffs had been the primary reason for the earlier price increases, it would have been expected to cut prices after the tariffs were removed rather than raise them again.
The dispute comes after Sony told investors in July that it expected to receive $508 million in tariff refunds from the US government.
The refund helped lift Sony's first-quarter operating income by 37%, according to the games news website.
Sony, however, argues that receiving a government tariff refund does not mean the company must return the money to consumers who purchased consoles at previously advertised prices.
Microsoft has taken a similar position in a separate class-action lawsuit filed in federal court in Washington state and has also asked for the case to be dismissed.
According to website, Microsoft's lawyers argued that customers received exactly what they paid for at the advertised price and therefore had no basis for claiming that the company owes them a refund.
Microsoft said the plaintiff had not provided specific evidence showing that any portion of the Xbox price increase was directly attributable to tariffs.
The company also argued that it would be impossible to recreate a dollar-for-dollar calculation of tariff-related pricing because console prices are affected by numerous market factors.
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