Holiday Shopping Season: How Tariffs are Impacting Gamers and Shoppers
Bargain-hunting gamers will likely be disappointed by meager Cyber Monday discounts, revealing how President Donald Trump’s tariffs are influencing what gets wrapped up and placed beneath Christmas trees.
Retailers often charge top dollar for the latest, in-demand consoles like Sony Group Corp.’s PlayStation 5 and Nintendo Co.’s Switch 2, but bargain hunters would usually find Cyber Monday deals on older models, said Kristin McGrath, senior editor at the deal-hunting website the Krazy Coupon Lady. That’s not happening this year. For instance, the Switch OLED model released in 2021 is selling at full retail price with a free game download replacing a discount, she said.
The Impact of Tariffs on Gaming Consoles
Sony, Nintendo and Microsoft Corp. all warned they’d be raising the prices on gaming consoles this year, but there had been hope for holiday discounting. “To see older models selling at full price is unexpected,” McGrath said. “We just aren’t seeing strong gaming deals.”
The holiday shopping season so far is swirling in mixed signals. The National Retail Federation earlier this month forecast spending in November and December would increase as much as 4.2% from a year earlier to reach $1.02 trillion. That would be a slight slowdown from last year’s spending growth of 4.3%. But U.S. consumer confidence in November took its deepest dive in seven months due to a shaky labor market and concerns about the 43-day government shutdown. Black Friday shoppers were largely underwhelmed by scant discounts.
Retail News and Trends
Cyber Monday and the Impact of Tariffs
Cyber Monday is once again expected to be the biggest online shopping day of the year in the U.S., with consumers spending $14.2 billion, an increase of 6.3% from a year earlier, according to Adobe Inc. It’s also the best day of the year to buy electronics, with discounts averaging 30%, according to Adobe. Discounts for things like headphones, robot vacuums and fitness trackers are on par with previous years, which could be due to importers shipping in extra inventory to preempt the tariffs.
This is the first holiday shopping season since Trump announced sweeping tariffs in April on dozens of countries, sending shockwaves through the global supply chain and prompting ongoing negotiations with China, a major exporter to the U.S. It can take as long as a year for tariffs to show up in consumer price hikes, but there are already signs holiday shoppers are likely spending more and getting less. Order volumes on Thanksgiving dropped 2% from a year ago while the average price of items ordered was up 8%, according to Salesforce Inc.
Popular Gift Items and Tariffs
Popular gift items such as toys and electronics are exposed to tariffs since they are largely sourced from other countries, including China.
“We’re seeing tariffs drive costs higher for holiday shoppers in key discretionary spend areas like toys and electronics,” said Caila Schwartz, Salesforce’s director of consumer insights. “While the higher-income consumer leans heavily into furniture, luxury, and other high-value gifting categories, the average income consumer is being priced out of these traditional gifting segments.”
Three consoles will see a price hike as levies against Japanese exports start to bite.
The lot includes the black stapler, offending staple — and Ryan Cohen’s undies.
Conclusion
In conclusion, the holiday shopping season is being impacted by tariffs, with bargain-hunting gamers being disappointed by meager Cyber Monday discounts. The tariffs are driving costs higher for holiday shoppers, particularly in the areas of toys and electronics. While higher-income consumers may not be affected, average-income consumers are being priced out of traditional gifting segments.
Frequently Asked Questions
Q: What is the impact of tariffs on gaming consoles?
A: The tariffs are causing prices to rise for gaming consoles, with Sony, Nintendo, and Microsoft Corp. all warning of price increases. Older models are selling at full retail price, with no discounts available.
Q: How are tariffs affecting the holiday shopping season?
A: The tariffs are driving costs higher for holiday shoppers, particularly in the areas of toys and electronics. Order volumes on Thanksgiving dropped 2% from a year ago, while the average price of items ordered was up 8%.
Q: What can consumers expect on Cyber Monday?
A: Cyber Monday is expected to be the biggest online shopping day of the year, with consumers spending $14.2 billion. Discounts for electronics will average 30%, but tariffs may limit the availability of deals on certain items.
