Sony Weighs PS5 Price Increase Due to $685M Tariff Impact

Sony has announced it is contemplating price increases due to the significant impact of tariffs on its operations. In its financial results for the fiscal year ending March 2025, and during a subsequent investor Q&A session, Sony's executives delved into the effects of the tariffs introduced by former President Trump.

Chief Financial Officer Lin Tao highlighted that tariffs could cost Sony up to 100 billion yen (approximately $685 million), a substantial figure given Sony's extensive involvement in hardware manufacturing, which includes the PlayStation 5. Tao suggested that Sony might pass some of these costs onto consumers through higher prices for its hardware, potentially affecting the PS5.

"In terms of the tariff, we are not just calculating the simple tariff to arrive at 100 billion yen," Tao explained during the investor webcast. "We are considering the currently available information and market trends, which might lead us to adjust prices and manage shipment allocations. We are taking various measures to address the 100 billion yen impact."

Sony CEO Hiroki Totoki addressed the situation specifically concerning the PlayStation, mentioning the possibility of manufacturing consoles in the U.S. to circumvent the tariffs. "These hardware can certainly be produced locally," Totoki stated. "It's an efficient strategy to consider, though the PS5 is manufactured in various regions. The decision to produce in the U.S. or not is something we need to evaluate moving forward. We are not in a critical situation yet."

Sony's Hiroki Totoki is considering producing the PS5 in the United States due to the tariffs. "It needs to be considered going forward" pic.twitter.com/c1cEQIwXA4

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Analysts have informed IGN that they anticipate Sony will follow the precedent set by Nintendo and Microsoft by increasing game prices to $80. There is speculation that the PS5 family of consoles, especially the PS5 Pro, might also see price hikes. This has prompted some consumers to purchase the console preemptively before any official announcement from Sony.

Daniel Ahmad, Director of Research and Insights at Niko Partners, noted that Sony has already adjusted console prices in various regions outside the U.S. "Sony has raised the price of its console multiple times outside the U.S.," he said. "There's a hesitation from both Sony and Microsoft to raise prices in the U.S. due to its significance in console sales. Nonetheless, we wouldn't be surprised if Sony increases the PS5 prices in the U.S. as well."

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James McWhirter, Senior Analyst at Omdia, provided further context. "PS5 hardware is mostly manufactured in China, which exposes Sony's supply chain to increased risks from U.S. tariffs," he said. "However, the console market typically sees up to half of its sales in the fourth quarter, allowing both Microsoft and Sony more time to utilize existing inventories. In 2019, consoles received an exemption from tariffs on Chinese goods, but this was not implemented until August."

McWhirter continued, "With Microsoft having already adjusted its prices this week, it paves the way for Sony to possibly follow suit with the PS5. This decision will be particularly challenging in the U.S., the world's largest console market, which has generally been protected from such increases, except for the PS5 Digital, which saw a $50 price rise in late 2023."