Panic, the company behind the quirky Playdate handheld gaming device, has announced it will be refunding customers who paid an additional surcharge related to U.S. tariffs. This move stands in contrast to larger console makers such as Sony, Nintendo, and Microsoft, which have largely kept similar tariff-related refunds.
In an email to affected customers, Panic explained that it had previously increased the Playdate's price to offset costs incurred by U.S. tariffs. Upon the tariffs being deemed unlawful and refunds becoming available to companies, Panic confirmed it would pass these reimbursements directly to its customers. The amount in question is $12.36 per system, and the refunds are expected to appear in customer accounts within days. Panic stated that the money is "just not our money to keep, and it felt really good to give it back."
This decision by Panic is notable given the actions of larger industry players. While many companies have not directly addressed the possibility of tariff refunds, some have publicly acknowledged the positive impact these refunds had on their financial statements. Sony and Nintendo, for instance, reported increased revenue due to such unexpected gains. This lack of customer-focused refunds has even led to ongoing class-action lawsuits.
Nintendo, in its defense, argued that it made only "modest and selective price adjustments" and highlighted that it did not increase the price of the Switch OLED last year. "Nintendo or one of its retailers set a price for each product, and consumers decided whether that price was worth paying," the company stated in a court filing. "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."
Panic had previously communicated its stance on its website, detailing the necessity of the surcharge due to the low profit margins on its hardware. Back in February, after the Supreme Court ruled against the tariffs, Panic expressed its desire to remove the surcharge, writing, "Our deepest dream is that we can delete this line item, and this page, entirely, someday soon."
While securing these refunds involved significant administrative work for Panic, including filing government paperwork and developing a system for processing the reimbursements, the company maintained that it was the right decision. Cabel Sasser, CEO of Panic, told Game Developer that while the process was laborious and at times felt disproportionate compared to the efforts of larger companies, it was essential. "Our small size means we’re far more directly affected by something like a tariff," he added. Neven Mrgan, also from Panic, commented on Bluesky that despite the effort and potential lost sales due to the initial tariff announcement, the decision to refund customers was unanimous.
Although Panic's move is unlikely to compel larger corporations to adopt a similar policy, it demonstrates the feasibility of refunding such charges to consumers and draws attention to the Playdate device itself.