Well that's an easy one ... game hardware prices don't go down the same way any more because advanced node processes aren't going down in price. 

In the past, no one really needed high end nodes day 1 other than some gamers for game consoles/gaming GPUs and that was a small audience overall. 

Today, AI spend is bigger than some entire large countries' GDP, and then on top of that you have the massive smartphone business with Apple doubling down on having to have the top design node every year ... this has sent process node prices through the roof. The modern nodes are at such a small size (8nm to 6nm to 5nm, etc. etc.) too that the complexity of mass producing  those chips has just stayed high. 

If you thought companies' were going to eat significant tariff costs on top of that, you were being naïve anyway. That was never going to happen. Tariffs are a tax the consumer pays largely. Plain and simple. 

Honestly, I don't think this will hurt them that much, as they have basically no competition in the AAA home console field any more.

People will grumble, but then they'll shell out anyway.

Bodes well for the mid terms?

In theory tariffs don't bother me, if it brings MFG jobs back.  While some companies have "committed" to bringing jobs back, I'll believe it when I see it.  But having jobs back, on paper, would be nice.

https://www.cbsnews.com/news/us-manufacturing-domestic-tariffs/

We shall see.  Long term, paying a bit extra for a video game system to have jobs return...  I lean towards jobs.  Assuming any of this works.

I remain skeptical (on follow through) but Nvidia, TMSC and Apple investing billions in US MFG?  J&J?  Merck?  If this happens, sorry but paying $50 more for a ps5 is well worth it for the economic impact.  

Ps6 should should come out in the end of 2029, anything earlier would be stupid.

What might ultimately happen is that the USA keeps fisting it's closest allies, alienating them so they seek stronger ties elsewhere... Which is what is actually happening on the world stage.

The world is a larger market than the USA. China and India are high-growth. I know the EU and Asia/Pacific are forming closer ties with each other.

My retirement fund has divested all it's holdings in the USA and is now investing into Europe because the USA is a crap trading partner now.

Majority of the technology and R&D research into chip fabrication is done outside of the USA.
ASML is Dutch. TSMC the leader in chip manufacturing is Taiwanese. Even the CEO's of AMD and nVidia came from Taiwan, which seems to be the tech-center of the world, not the USA.

The USA as a nation is just to expensive to manufacture in, they tend to import their high quality work force which can now work elsewhere.

Resources are also changing gear, USA with it's trade war with China is opening avenues for nations like Australia to start competing on rare-earths. (Which actually aren't rare at all.) Rather than the USA start mining and refining the stuff.

Honestly, Trump has done more harm than good, ultimately the USA is the loser long-term in all of this.

That would be a 9 years generation, for a system that has already peaked before its 5th year.

Tariffs are a big reason for higher prices but don't forget that your country has higher tariff income as ever before! Isn't that enough to make you happy?

Peaked or not, no one is buying a 650$-750$ PS6.