Tariffs Threaten to Raise Video Game Console Prices—and Gamers are already feeling the impact

Tariffs in the USA are threatening to increase the cost of the gaming industry, so we did a follow up interview with Nick Allen of Game Exchange to get his thoughts. For years, this store has been a haven for retro collectors, parents looking for birthday gifts, and local teens eager to grab the latest consoles, however lately customers are starting to ask different questions.

“There is a lot of talk around the Tariffs and we have yet to see the full effects. It is causing a lot of scare around the store..” Nick says.

Under proposed tariffs from President Donald Trump’s administration, gaming consoles—unlike smartphones and computers—are not exempt. These tariffs could raise prices on video game consoles by as much as 40%, according to the Consumer Technology Association (CTA). That’s an estimated $250 increase on new systems, making them far less accessible to the everyday consumer—and putting small retailers like Derek in a difficult position.

“I have a lot of parents worried they will no longer be able to afford their child's interest.”

Major industry players—Nintendo, Sony, and Microsoft—have also sounded the alarm. In a joint letter to the U.S. Trade Representative, the companies warned the tariffs could cost American consumers an additional $840 million. With 96% of consoles manufactured in China, the companies argue that shifting production isn’t feasible in the short term.

The Entertainment Software Association (ESA) has voiced broader economic concerns, noting that tariffs on gaming hardware could negatively affect hundreds of millions of Americans and disrupt an industry that contributes billions to the U.S. economy.

Meanwhile, online content creators are facing similar issues. Gaming YouTuber SaiyaRan Gaming shared on X (formerly Twitter):

“If you think Nintendo prices are too high then please do not buy it, there are indie and AA developers that would love your support”

We reached out to Saiya Ran to get his personal thoughts on the Tariffs. “The Nintendo Switch  was the primary focus of my channel for some time, with the Nintendo Switch 2 being $200 more plus tariffs it will be hard to gauge the value proposition. “I would love to get a Nintendo Switch 2 for both myself and my son but with Tariffs I do not know if I will be able to afford it, obviously we will see what our government here in the US does but it is not looking so good.

As the gaming industry braces for the impact, small businesses like Game Exchange and Content Creators Like Saiya Ran are left navigating uncertainty.