Sony Eyes Price Hike Amid $685M Tariff Pressure on PS5

Sony is considering price increases to address the substantial financial impact of tariffs on its operations.

The Japanese hardware and software firm disclosed its fiscal results for the year ending March 2025. During a subsequent investor Q&A, executives elaborated on the repercussions of Trump-era tariffs.

Chief Financial Officer Lin Tao stated that tariffs are projected to cost Sony approximately 100 billion yen (around $685 million), assuming the announced tariff rates remain unchanged. Sony is heavily exposed due to its extensive involvement in hardware manufacturing, which includes producing video game consoles like the PlayStation 5.

Tao indicated that Sony is evaluating the possibility of passing a portion of these increased costs onto consumers through higher hardware prices, potentially affecting the PS5.

"Regarding the tariffs, our assessment of the 100 billion yen impact is not a simple calculation. We are analyzing current information and market trends, and we may adjust pricing and shipment allocations accordingly," Tao explained during the investor webcast.

"We are implementing various strategies to manage this 100 billion yen impact effectively."

Sony CEO Hiroki Totoki addressed the PlayStation business specifically, noting that the company is exploring manufacturing consoles within the United States to mitigate tariff exposure.

"This hardware can certainly be produced locally," Totoki said. "I believe that would be a prudent approach. The PS5 is currently manufactured in multiple regions. Whether production will be established in the U.S. is a matter for future consideration. Our situation is not yet critical."

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 have informed IGN that they anticipate Sony will follow Nintendo and Microsoft's precedent and potentially raise game prices to $80. Could the PS5 console family also see a price hike? Many expect a price increase for the PS5 Pro model specifically, prompting some consumers to purchase the console preemptively before any official announcement.

Daniel Ahmad, Director of Research and Insights at Niko Partners, told IGN that while Sony has recently increased console prices in some markets, the United States might be next.

"Sony has already implemented multiple price increases for its consoles outside the U.S.," he noted. "There is a natural hesitation from both Sony and Microsoft to raise prices in the U.S., given its significance as the largest console market. However, we would not be surprised to see Sony follow with price adjustments for the PS5 in the U.S."

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James McWhirter, Senior Analyst at Omdia, added further context. "PS5 hardware is primarily manufactured in China, which leaves Sony's supply chain vulnerable to U.S. tariffs. However, the console market typically sees up to half of its annual sales in the fourth quarter. This timing provided Microsoft and Sony with a buffer, allowing them to rely on existing inventory. In 2019, consoles received an exemption from Chinese tariffs, though this exemption was not ratified until August."

"With Microsoft initiating price adjustments this week, the path is now open for Sony to follow suit with the PS5. This will be a difficult decision, especially in the U.S.—the world's largest console market—which has historically been shielded from such increases, with the exception of a $50 price rise for the PS5 Digital Edition in late 2023."