Sony May Raise Prices Due to $685M Tariff Impact: Will PS5 Cost More?

Sony has announced that it is contemplating price increases due to the significant impact of tariffs on its operations. The company disclosed its financial performance for the fiscal year ending March 2025, and during a subsequent Q&A session with investors, executives elaborated on the effects of these tariffs.

Sony's Chief Financial Officer, Lin Tao, highlighted that the tariffs are expected to cost the company approximately 100 billion yen (around $685 million), given the current announced tariffs. This impact is particularly felt in Sony's hardware manufacturing sector, which includes the production of video game consoles like the PlayStation 5.

"In terms of the tariff, we are not just calculating the direct impact to reach the 100 billion yen figure, but we are also considering current market trends and available data. We might pass on some of these costs to our product prices and adjust our shipment strategies," Tao explained during the investor webcast.

Sony's CEO, Hiroki Totoki, specifically addressed the PlayStation situation, suggesting that local production in the U.S. could be a viable strategy to circumvent the tariffs.

"These hardware products can indeed be manufactured locally," Totoki stated. "While the PS5 is currently produced in various regions, the possibility of manufacturing in the U.S. is something we need to consider moving forward. However, we are not yet in a critical situation."

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

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Analysts speaking to IGN predict that Sony might follow the lead of Nintendo and Microsoft by increasing game prices to $80. There is also speculation that the PS5, particularly the PS5 Pro, could see a price hike, prompting some consumers to purchase the console preemptively.

Daniel Ahmad, Director of Research and Insights at Niko Partners, noted that Sony has already adjusted console prices in regions outside the U.S., but the American market might soon see changes as well.

"Sony has increased its console prices multiple times outside the U.S.," Ahmad said. "There is a reluctance from both Sony and Microsoft to raise prices in the U.S. due to its significance in console sales. However, it would not be surprising if Sony eventually raises the PS5 prices in the U.S."

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View 14 ImagesJames McWhirter, Senior Analyst at Omdia, provided further insight into Sony's situation. "The PS5 is primarily manufactured in China, making Sony's supply chain vulnerable to U.S. tariffs. However, the console market typically sees half of its sales in the fourth quarter, which gives companies like Sony and Microsoft time to use existing stock. In 2019, consoles were temporarily exempted from tariffs on Chinese goods, but this decision was delayed until August.

"With Microsoft recently adjusting its prices, it sets a precedent for Sony to potentially follow suit with the PS5. This decision will be particularly challenging in the U.S., the largest console market globally, which has generally been protected from such increases, except for a $50 rise in the PS5 Digital Edition in late 2023."