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Microsoft and Sony Ask Courts to Dismiss Lawsuits Tied to Tariff Refunds

Sony previously estimated $508 million in tariff refunds, with its CFO saying most of the money would be recouped by the gaming division.

Microsoft and Sony are asking courts to throw out separate consumer lawsuits over tariff-related console prices, taking the position that refunds tied to their hardware costs do not automatically belong to people who paid the earlier retail price. The motions give buyers a clear answer to one question, although they do not settle the cases themselves.

At the center of the dispute is a February 2026 ruling that found the Trump administration’s tech tariffs unconstitutional. Companies then sought refunds, while consumers who faced higher prices questioned whether any recovered money would reach them. An Xbox buyer filed a proposed class action against Microsoft in July, and a similar case against Sony was filed in May.

Microsoft and Sony are challenging the refund claims

Microsoft’s legal team filed its motion in late August, arguing that a customer bought an Xbox at an advertised price and received exactly what was promised, regardless of Microsoft’s cost structure. The filing rejects the idea that a later change in tariff law should force Microsoft to recalculate completed sales.

Sony’s lawyers filed their motion on Monday in a California court, and the filing states, “Paying fair market price for voluntarily purchased consumer goods is not a legally cognizable injury in fact.” Like Microsoft’s motion, Sony’s argument focuses on whether the lawsuits identify a legal injury that the courts can remedy, rather than promising buyers a share of any refund.

Nintendo had already advanced a similar position in July. Its attorneys argued, “Those who bought Nintendo’s products received exactly what they bargained and paid for: a console, game and/or accessory at a price to which both parties agreed.” Nintendo also sued the U.S. government over the tariff policy in March, giving the broader dispute another legal front.

The dollar figure behind Sony’s case helps explain the attention. Sony previously estimated that it would receive $508 million in tariff refunds, and its CFO reportedly said most of that money would be recouped by the gaming division. Neither company’s position treats that money as an automatic rebate for customers who bought consoles at prices affected by the tariffs.

Neither motion decides the underlying cases. The courts still have to determine whether the lawsuits can proceed, so the filings establish Microsoft’s and Sony’s legal positions rather than a final outcome for buyers. For now, consumers are left waiting to see whether the refund dispute changes anything about past console purchases.

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Angel Kicevski

I've spent half of my life playing video games, ever since the competitive 1.6 era, where I played professionally. Now I am happily married to Margarita Kicevski and have two beautiful children. My goal is to deliver fresh news and updates from the gaming world, but also deliver some juicy guides. Previously, I worked on another website for 8 years and decided to continue my journey here! So basically, I am in this industry for 10+ years... which has been quite a lot, let me tell you!

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