Sony is evaluating price adjustments due to significant tariff-related financial pressures.
The Japanese tech giant released its financial results for the fiscal year ending March 2025, followed by an investor Q&A where executives addressed the impact of Trump’s tariffs.
Chief Financial Officer Lin Tao noted that tariffs will cost Sony approximately 100 billion yen ($685 million), assuming current tariff policies persist. This affects Sony’s hardware manufacturing, particularly its PlayStation 5 consoles.
Tao indicated that Sony might offset some costs by raising hardware prices, potentially impacting the PS5.
“Regarding tariffs, we’re not just calculating their direct impact to reach 100 billion yen. Based on available data and market trends, we may adjust pricing and optimize shipment strategies,” Tao explained during the investor webcast.
“We’re implementing various measures to mitigate the 100 billion yen impact,” he added.
Sony CEO Hiroki Totoki addressed PlayStation specifically, suggesting that manufacturing consoles in the U.S. could help bypass tariffs.
“Producing hardware locally could be an effective approach,” Totoki said. “While PS5 production spans multiple regions, we’ll need to assess whether U.S. manufacturing is viable. We’re not in a critical situation yet.”
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
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Analysts told IGN they anticipate Sony may align with Nintendo and Microsoft by increasing game prices to $80. A PS5 price hike is also possible, particularly for the PS5 Pro, prompting some consumers to purchase consoles preemptively.
Daniel Ahmad, director of research at Niko Partners, told IGN that Sony has already raised console prices in select regions, with the U.S. potentially next.
“Sony has increased console prices multiple times outside the U.S.,” Ahmad said. “Given the U.S. market’s size and significance for console sales, both Sony and Microsoft are cautious about price hikes there. Still, a PS5 price increase in the U.S. wouldn’t be surprising.”
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James McWhirter, senior analyst at Omdia, noted, “With PS5 hardware primarily manufactured in China, Sony’s supply chain faces significant tariff risks from the U.S. However, up to half of console sales typically occur in Q4, giving Sony and Microsoft time to leverage existing inventories. In 2019, consoles were exempt from China tariffs, but that exemption wasn’t effective until August.”
“Microsoft’s recent price adjustments have paved the way for Sony to follow suit with the PS5. This decision will be challenging in the U.S., the largest console market, which has largely avoided price hikes, except for the PS5 Digital’s $50 increase in late 2023.”
