If you’ve been planning to buy Sony’s PlayStation 5, expect to pay a bit more.
“Similar to many global businesses, we continue to navigate a challenging economic environment,” the tech company wrote in a company blog post Wednesday (Aug. 20). “As a result, we’ve made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the U.S. starting on Aug. 21.”
The company is recommending $50 price hikes for the three versions of the video game console, meaning the standard PlayStation 5 would now sell for $549.99, the PlayStation 5 Digital Edition for $499.99, and the PlayStation 5 Pro for $749.99, the post said.
Sony is the last of the big three video game companies to raise prices, Ars Technica reported Wednesday. Microsoft increased Xbox prices in March, while Nintendo has gone through two rounds of price hikes, one for Switch and Switch 2 accessories in April and a second for other accessories and Switch 1 consoles earlier this month.
Such price increases would have been inconceivable a decade ago, as console makers typically lowered prices because of aging hardware, the report said. However, tariffs imposed by the White House have made it more expensive to bring consoles to the United States and are affecting shipping rates, as well as manufacturing and assembling costs.
Tariff-related costs and a decline in consumer confidence have led to a drop in spending and caused many retailers to lower their forecasts.
During an earnings call Wednesday, Target Chief Financial Officer Jim Lee said the retailer is taking a “cautious approach” for the back half of the year.
Meanwhile, Home Depot said during an earnings call Tuesday (Aug. 19) that it is maintaining its guidance, while rival Lowe’s indicated during its earnings call Wednesday that it will continue to be challenged by the effects of high mortgage rates and consumer caution for the remainder of the year.
As PYMNTS CEO Karen Webster wrote in a column this week, consumers are already seeking ways to cut back on their retail spending. That can mean everything from grocery shoppers swapping out branded goods for private labels to families putting off appliance replacements to people deciding that some aspects of their healthcare can now be discretionary.
“Tariffs amplify this shift,” Webster wrote. “They are a silent tax that households and businesses ultimately pay. Importers pass the costs on, and consumers encounter them in checkout lanes and grocery aisles. Essentials consume more of the budget, and discretionary categories shrink.”