PlayStation Wins BAFTA Game of the Year — As Tariffs Threaten Console Market

• Sony’s PlayStation had one of the best evenings at this year’s BAFTA Games Awards.
• The gaming industry is bracing for disruption as U.S. tariffs on international imports threaten to raise console prices and disrupt global manufacturing.
• Ongoing global layoffs and slowed growth signal mounting challenges for the gaming sector.

PlayStation exclusive Astro Bot was the runaway winner at this year’s BAFTA Games Awards, sweeping up five trophies, including the prestigious Best Game of the Year award.

The celebratory night for Sony’s PlayStation and the wider gaming industry comes as looming tariffs imposed by U.S. President Donald Trump threaten to raise prices for both gamers and manufacturers.

Adding to the industry’s woes, widespread layoffs continue to hit studios across the globe.

PlayStation Sweeps Awards

This year’s BAFTA Games Awards, an annual British ceremony honoring “outstanding creative achievement” in the gaming industry, took place in London on Tuesday, April 8.

Sony emerged as the night’s biggest winner, with last year’s 3D platformer Astro Bot, featuring PlayStation’s newest mascot, winning in five categories: Best Animation, Family Game, Game Design, Audio Achievement, and Best Game.

In addition, Helldivers 2, a multiplayer sequel that became a sleeper hit for the console, walked away with two awards.

Elsewhere, Thank Goodness You’re Here!, a slapstick cartoon puzzler set in a fictional Northern town, won the award for Best British Game.

Vampire Survivors, another smash hit developed by a small U.K. team, took home the Best Evolving Game award following its win for Game of the Year in 2023.

Impact of Tariffs on Gaming

Although the night was full of celebration and industry triumphs, the threat of tariffs imposed by President Trump has cast uncertainty across the gaming world.

On April 2, Trump signed an executive order imposing a minimum 10% tariff on all U.S. imports, with some countries facing levies as high as 50%.

Tensions between the U.S. and China continue to escalate. On April 6, China responded to the new tariffs with a matching 34% tax on American imports.

Beijing declared it would “resolutely take countermeasures,” vowing to “fight to the end if the U.S. side is bent on going down the wrong path.”

Sony and Microsoft produce most of their consoles in China, leaving them especially vulnerable to the steep 34% Chinese import tariffs.

Ahmed Al Sharif, Chief Technology Officer at Sandsoft, told CCN that the industry should expect major operational shifts if the tariffs remain in place.

“Consumer spending and disposable income will be severely limited, impacting hardware sales—especially for consoles. While these tariffs will increase prices, investing in a multi-use device like a PC or mobile will be more justified than dedicated gaming equipment,” Sharif said.

“Prices will rise, production strategies will shift, and player habits will change,” he added.

These changes in consumer behavior could drive a shift toward cloud-based gaming as gamers look for affordable alternatives to rising hardware and software costs.

The cloud gaming market, valued at $4 billion in 2024, is projected to grow to $22 billion by 2030, according to GlobalData’s 2025 Console Gaming Report.

Layoffs Continue

Meanwhile, the gaming industry has been hit hard by waves of layoffs and studio closures in the aftermath of the post-pandemic boom.

Over 10,000 developers lost their jobs in 2023. Estimates suggest that the total number of layoffs in 2024 was at least 40% higher.

This trend has continued into 2025, with no sign of slowing down.

In January, Microsoft laid off around 1,900 employees from its gaming division, including teams at Activision Blizzard King, which the company acquired for $69 billion in 2023.

Once considered a recession-proof and rapidly growing industry, video gaming revenue grew by only 0.6% from 2022 to 2023, reflecting a significant slowdown in market expansion.

In February, Microsoft Gaming President Phil Spencer acknowledged the industry’s slowdown.

“I don’t think we’re doing a good enough job finding new players,” Spencer told Game File.

“Let’s pick consoles as a good example: We’ve found 200 million global households that will play console games. And that number really hasn’t changed in the last five, six years,” he added.