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

Sony is currently evaluating the potential of raising prices across its product lineup in response to the significant financial burden imposed by U.S. tariffs.

During its recent financial results presentation for the fiscal year ending March 2025, Sony addressed the growing economic pressures stemming from trade tariffs, particularly those introduced during the Trump administration. In a follow-up investor Q&A session, company executives provided insight into how these tariffs could affect its operations moving forward.

Chief Financial Officer Lin Tao stated that the projected impact of tariffs on Sony’s finances amounts to approximately 100 billion yen (roughly $685 million), assuming current tariff policies remain unchanged. As a major hardware manufacturer—responsible for products like the PlayStation 5—Sony is especially vulnerable to such trade barriers.

Tao indicated that one possible countermeasure involves passing part of this cost increase directly to consumers through higher product pricing, which could include the PS5 console and other hardware offerings.

“We are not just simply calculating the simple tariff to come up with 100 billion yen,” Tao explained during the investor webcast, “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.”

Sony CEO Hiroki Totoki also weighed in on the topic, noting that relocating PlayStation production to the United States could be a viable strategy to mitigate tariff exposure.

“These hardware of course can be produced locally,” Totoki said. “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

Industry analysts believe Sony may soon follow Microsoft and Nintendo in increasing console and game prices. While there has been no official announcement yet, many expect the PS5 Pro to carry a higher price tag, prompting some consumers to make purchases preemptively.

Daniel Ahmad, director of research and insights at Niko Partners, noted that Sony has already implemented price hikes in several global markets, suggesting the U.S. could be next.

“Sony has raised the price of its console multiple times outside the U.S.,” he told IGN. “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, added: “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 gives 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 initiated price readjustments this week, it now opens the door for Sony to follow with the PS5. This will be a difficult decision in the U.S.—the world’s largest console market—which has largely avoided significant price increases in the past, aside from the $50 bump for the PS5 Digital Edition in late 2023.”