Sony and Microsoft tell courts: we don't have to give players tariff refunds

Sony and Microsoft are telling US courts that they have no obligation to pass tariff refunds on to consumers who paid higher prices for PlayStation and Xbox consoles.

In two separate lawsuits, lawyers for both companies argued that players who bought consoles at raised prices are not entitled to compensation — even though the platform holders themselves are in line to receive refunds from the US government. Nintendo, facing its own suit over the same issue, made a similar argument in July.

The dispute traces back to 2025, when Sony and Microsoft raised console prices in the US. Neither company directly named tariffs as the reason. Sony cited "a challenging economic environment" when it raised PlayStation 5 prices in August 2025. Microsoft pointed to "market conditions and the rising cost of development" alongside Xbox price hikes in May 2025.

In February 2026, nearly a year after the tariffs took effect, the US Supreme Court struck them down in a 6–3 ruling, holding that the president cannot unilaterally set tariffs because taxation power belongs to Congress under the Constitution. Chief Justice John Roberts wrote the majority opinion; Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented. A judge subsequently ruled that companies are entitled to refunds for the tariffs they paid.

Sony told investors in July it expects roughly US$508m (£375m) in tariff refunds, with most of that going to PlayStation. The US Treasury had collected more than US$133 billion from the tariffs as of December, according to the Associated Press.

Players who paid the higher prices see things differently. A group of consumers in California sued Sony, seeking class-action status. Sony has moved to dismiss the suit, arguing that paying fair market price for voluntarily purchased goods "is not a legally cognisable injury in fact." Microsoft's case was brought by a single individual in Washington State. Microsoft's lawyers countered that "there is nothing unjust about a plaintiff purchasing an Xbox at an advertised price and getting exactly what he paid for."

No judge has yet ruled in favour of the companies' arguments in any of the tariff refund lawsuits.

None of the three console makers — Sony, Microsoft or Nintendo — have lowered console prices since the Supreme Court struck the tariffs down.

What makes this friction sharp for players is the asymmetry. The platform holders get their money back. The people who actually paid the inflated retail prices — the difference passed along to consumers when tariffs landed — get nothing, at least so far, if the companies' legal arguments hold.

The tariffs themselves were imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), a law that gives the president broad authority during declared national emergencies. The Supreme Court found that using that law to set tariffs exceeded presidential power. After the ruling, Trump pledged to impose a new global 10% tariff under a different law restricted to 150 days — one that has never been used to apply tariffs before.

For now, the cases proceed. Players who want a refund for the tariff portion of their console purchase are waiting on courts that have not yet decided whether the companies' arguments hold up.