GameStop Corp. (NYSE:GME) quickly responded to Sony Group Corp.’s (NYSE:SONY) $50 PlayStation 5 price hike with a targeted trade-in promotion, highlighting retail industry tensions amid ongoing tariff pressures.

Sony Implements Price Increase Citing Economic Challenges

Sony announced on Wednesday that PS5 console prices will increase $50 effective August 21, with the standard PS5 now priced at $549.99 and the Digital Edition at $499.99. The PS5 Pro jumped to $749.99.

“Similar to many global businesses, we continue to navigate a challenging economic environment,” said Isabelle Tomatis, Sony’s Vice President of Global Marketing, in a PlayStation blog post.

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GameStop Launches Counter-Promotion

GameStop immediately countered with a social media campaign declaring “GameStop has your back.” The retailer offers an additional $50 trade-in credit when customers trade any PS4, Microsoft Corp. (NASDAQ:MSFT) owned Xbox One, Xbox Series, or Nintendo Co.‘s (OTC:NTDOY) Nintendo Switch toward a new PS5 purchase through August 24.

The promotion requires complete consoles with controllers, HDMI and power cables in working condition. Trades must occur in the same transaction as the PS5 purchase.

Tariff Impact Drives Manufacturing Concerns

Sony faces potential $680 million tariff impacts, according to May earnings reports. The company manufactures most PS5 units in China, making them vulnerable to trade policy changes.

Sony CEO Hiroki Totoki indicated the company considers moving PlayStation production to the U.S., calling it “an efficient strategy” to offset tariffs. The current 30% China tariffs could affect console pricing strategies.

Market Implications For The Gaming Sector

The U.S. represents 29% of Sony’s revenue, with 18.5 million PS5 units shipped in the past 12 months.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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