Sony considers PS5 price rise over $685M tariff hit

Sony is evaluating potential price increases to mitigate the significant financial impact of new tariffs on its operations.

The Japanese electronics and entertainment giant discussed these economic pressures during its fiscal year 2025 earnings report. During an investor Q&A session, executives addressed how Trump-era tariffs could affect their business.

CFO Lin Tao revealed the tariffs could cost Sony approximately 100 billion yen ($685 million) if current policies remain unchanged. These trade restrictions particularly impact Sony's hardware manufacturing division, including production of PlayStation 5 consoles.

Tao indicated Sony may compensate for these costs through price adjustments on hardware products, potentially affecting PS5 pricing.

"We're considering various approaches beyond direct tariff calculations," Tao explained during the investor webcast. "This includes potential price adjustments and strategic shipment allocations to manage the estimated 100 billion yen impact."

Sony CEO Hiroki Totoki specifically addressed PlayStation manufacturing, suggesting potential U.S. production to circumvent tariffs.

"Localized production could be an effective strategy," Totoki noted. "While PS5 manufacturing currently occurs across multiple regions, we're evaluating potential U.S. production. This isn't an immediate necessity, but worth consideration moving forward.

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

— Destin (@DestinLegarie) May 14, 2025

Industry analysts predict Sony may follow competitors in implementing $80 game prices. There's growing speculation about potential PS5 price hikes, particularly for the PS5 Pro model.

Daniel Ahmad, Niko Partners' research director, told IGN: "Sony has previously raised console prices in certain markets. While the U.S. market has been spared so far, given its importance, we wouldn't rule out future adjustments."

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James McWhirter, Omdia senior analyst, added context: "Most PS5 hardware comes from China, exposing Sony to significant tariff risks. However, with about half of annual console sales occurring in Q4, companies can leverage existing inventory."

He continued: "Microsoft's recent price adjustments may create an opportunity for Sony to follow suit. The U.S. market presents a particularly challenging decision, having mostly avoided price increases except for the $50 PS5 Digital Edition hike in late 2023."