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

Sony has announced 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, and during a subsequent investor Q&A session, Sony's executives delved into the effects of these tariffs, particularly those imposed by the Trump administration.

Sony's Chief Financial Officer, Lin Tao, revealed that the tariffs are expected to cost the company approximately 100 billion yen, which equates to about $685 million, based on the current announced tariffs. This financial strain is felt keenly by Sony, given its substantial involvement in hardware manufacturing, including the popular PlayStation 5 console.

CFO Lin Tao hinted that Sony might pass some of these additional costs onto consumers through higher hardware prices, which could affect the PS5. "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," Tao stated during the investor webcast.

Sony's CEO, Hiroki Totoki, specifically addressed the PlayStation, suggesting that manufacturing the consoles in the U.S. could be a strategy to circumvent the tariffs. "These hardware of course can be produced locally," Totoki remarked. "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 Tarrifs. "It needs to be considered going forward" pic.twitter.com/c1cEQIwXA4

— Destin (@DestinLegarie) May 14, 2025

Analysts speaking to IGN predict that Sony may follow the lead of Nintendo and Microsoft in raising game prices to $80. There is also speculation that the PS5 family of consoles, particularly the PS5 Pro, might see a price increase. This has prompted some consumers to purchase the PS5 Pro ahead of any official announcement from Sony.

Daniel Ahmad, Director of Research and Insights at Niko Partners, noted that Sony has already increased console prices in various regions outside the U.S. "Sony has raised the price of its console multiple times outside the U.S.," he said. "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 context on the situation. "PS5 hardware is predominantly manufactured in China, exposing Sony's supply chain to greater risk from tariffs originating from the U.S.," he explained. "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."

McWhirter added, "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."