Sony has announced that it is contemplating price increases due to the significant impact of tariffs on its operations. The company disclosed its financial outcomes for the fiscal year ending March 2025, and during a subsequent Q&A session with investors, its executives elaborated on the effects of the tariffs introduced by former President Trump.
Chief Financial Officer Lin Tao revealed that tariffs are projected to cost Sony approximately 100 billion yen (around $685 million), based on the tariffs currently in place. This financial strain is particularly felt in Sony's hardware manufacturing sector, which includes the production of the PlayStation 5.
Tao hinted at the possibility of Sony transferring some of these costs to its hardware prices, potentially affecting the PS5."When considering the tariffs, we aren't just focusing on the direct cost to reach 100 billion yen," Tao explained during the investor webcast. "We're also taking into account the latest information and market trends, which might lead us to adjust our pricing and distribution strategies."
Sony CEO Hiroki Totoki addressed the PlayStation specifically, indicating that local production of the PS5 in the U.S. could be a viable strategy to circumvent tariffs.
"These hardware products can certainly be manufactured locally," Totoki noted. "While the PS5 is currently produced in various regions, the possibility of U.S. production is something we need to evaluate 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
— Destin (@DestinLegarie) May 14, 2025
Industry analysts have shared with IGN their predictions that Sony might follow the footsteps of Nintendo and Microsoft in raising game prices to $80. There is also speculation that the PS5, especially the PS5 Pro, could see a price increase, prompting some consumers to purchase units before any official announcements.
Daniel Ahmad, Director of Research and Insights at Niko Partners, pointed out that Sony has already adjusted console prices in various regions but has been hesitant to do so in the U.S. due to its significant market size.
"Sony has increased the price of its consoles multiple times outside the U.S.," Ahmad stated. "While there's a reluctance to raise prices in the U.S. given its importance to console sales, it wouldn't be surprising if Sony decided to increase the PS5's price there as well."
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James McWhirter, a Senior Analyst at Omdia, added that the majority of PS5 hardware is manufactured in China, making Sony vulnerable to U.S. tariffs. He also highlighted that a significant portion of console sales occur in the fourth quarter, providing Sony and Microsoft with a buffer period to manage their existing inventories.
"In 2019, consoles received a temporary exemption from tariffs on Chinese goods, but this did not take effect until August," McWhirter said. "With Microsoft already adjusting prices this week, the path is now open for Sony to do the same with the PS5. This will be a challenging decision in the U.S., the largest console market, which has generally been protected from such increases, except for the PS5 Digital Edition's $50 hike in late 2023."
