Analyst expects PS5 and PS5 Pro price increases to $700/900 after Xbox console tariff response

With Microsoft raising the prices of Xbox consoles, the industry is now waiting for Sony to respond. David Gibson, an MST Financial Senior Analyst, predicts that a PS5 and PS5 Pro price increase is inevitable. Gamers could see the MSRP of PlayStation consoles rise by as much as $200. That would result in the PS5 with disc drive priced at $699.99, while the PS5 Pro could jump to $899.99.

Gibson believes that despite some Xbox Series X console models costing $729.99, Microsoft is absorbing tariff impacts. The current tariff on Chinese imports into the US is 145%. Microsoft will lose money selling the systems, but it may be hoping that the two countries will compromise. However, PlayStation depends on console sales more for revenue than its rival.

Microsoft has pivoted to cross-platform publishing and subscriptions as Xbox console sales slow. On the other hand, the PlayStation brand remains more hardware-focused. Microsoft is reportedly working with Asus on the Kennan handheld, but another Xbox console may not arrive until 2028.

The $699.99 PS5 Pro price made some buyers decide a gaming PC was a better value. Unfortunately, tariffs also threaten to raise the prices and cause shortages of pre-built PCs and components. Sony may use these market conditions to justify significant upward price revisions.

Sony has already bumped up the MSRP of its consoles in Europe, the UK, Australia, and New Zealand. PlayStation systems, even in these regions, may see further adjustments. Games are not immune to tariffs either, with Microsoft and Nintendo setting a new $79.99 threshold for some first-party titles. It's unlikely that high-budget PlayStation projects will remain at $69.99.