It's obvious MS is doing it because of the tariffs I doubt Sony is going to eat the costs rather than pass it down to the consumers. $80 games for sure is coming now that MS and Nintendo are doing it too
The cost of everything everywhere has been going up since the lockdowns. I'm honestly amazed MS didn't insist on a price increase before now.
The globalisation killer app of outsourcing cheap labour overseas has been dead for a while. China stopped being cheap over a decade ago, and many, including China itself, started getting work outsourced from there to places like Vietnam.
However the complexity of what's required now means you simply can't find anywhere cheaper, because the few remaining cheap labour locations simply cannot make the complicated technological devices that previously could be slapped together by a few Chinese slaves on a conveyor belt.
Trumps Tariffs are accelerating the price increases, but they had already started anyway.