Sony Mulls PS5 Price Hike Due to $685M Tariff Impact

Sony has announced that 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, the Japanese tech giant discussed the effects of these tariffs during an investor Q&A session. Chief Financial Officer Lin Tao revealed that the tariffs could cost Sony approximately 100 billion yen (around $685 million), a substantial figure attributed to Sony's extensive involvement in hardware manufacturing, including the popular PlayStation 5 console.

Tao hinted at the possibility of passing some of these costs onto consumers through higher hardware prices, which could affect the PS5. He elaborated on the strategy, stating, "In terms of the tariff, we are not just simply calculating the simple tariff to come up with 100 billion yen, but thinking about the currently available information, and also looking at the market trend, we may pass on to the price, and also shipment allocation. So we are taking different measures in managing to come up to the 100 billion yen impact."

Sony's CEO, Hiroki Totoki, addressed the issue specifically regarding the PlayStation, suggesting that manufacturing the consoles in the U.S. could be a viable strategy to circumvent the tariffs. Totoki noted, "These hardware of course can be produced locally. I think that would be an efficient strategy. But PS5 is being manufactured in many areas. Whether it’s going to be manufactured in the U.S. or not, it needs to be considered going forward. We are not in such a critical situation."

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

Analysts speaking to IGN anticipate that Sony might follow the pricing strategies of Nintendo and Microsoft, potentially raising the price of games to $80. There is also speculation about a price increase for the PS5 family of consoles, particularly the PS5 Pro. This has led some consumers to purchase the console preemptively before any official announcement from Sony.

Daniel Ahmad, Director of Research and Insights at Niko Partners, commented on Sony's recent pricing adjustments, noting, "Sony has raised the price of its console multiple times outside the U.S. There is a reluctance from both Sony and Microsoft to raise prices in the U.S. given the size and importance of the market when it comes to console sales. That being said, we would not be surprised to see Sony follow suit with price increases on the PS5 in the U.S."

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James McWhirter, Senior Analyst at Omdia, provided further insight into the situation, stating, "PS5 hardware is predominantly manufactured in China, exposing Sony's supply chain to greater risk from tariffs originating from the U.S. Yet what we consistently observe in the console market is that up to half of consoles are typically sold during Q4, the final quarter of the year. This bought both Microsoft and Sony more time to rely on existing inventories. In 2019, consoles were granted an exemption from tariffs on goods from China, but this ruling did not come into effect until August.

"With Microsoft having blinked first with price readjustments this week, it now opens the door for Sony to follow with PS5. This is going to be a particularly tough decision in the U.S., the world's largest console market, which has historically been spared — save for PS5 Digital rising by $50 in late 2023."