Sony is bracing itself for a $680 million impact from US tariffs, and to compensate for those potential losses, the PlayStation manufacturer might pass the increasing costs to its customers. During the company's earnings call, Sony CFO Lin Tao told investors that price increases on its hardware are being considered, although the PS5 console was not mentioned specifically.
CEO Hiroki Totoki did mention that some PS5 console manufacturing could be moved to the US--most of its consoles are produced in China and are subject to a 30% tariff for now--as this would be "an efficient strategy" to avoid being caught in the crossfire of US President Donald Trump's tariffs.
"This hardware can be produced locally," Totoki said during the earnings call via a translator. "I think that would be an efficient strategy. PS5s are being manufactured in many areas. Whether it's going to be manufactured in the US or not, it needs to be considered going forward."
So far, the US has escaped PS5 price increases that have hit other markets around the world. Recently, Sony increased the price for the digital and standard editions of the PS5 console in the UK, Europe, Australia, and New Zealand due to a combination of factors like inflation, exchange rates, and macroeconomic trends. The price of the more-expensive PS5 Pro wasn't increased, while the PS5 disc-drive price was decreased. While some electronics are exempt from the high tariffs levied on China, game consoles aren't currently included.
Sony's competition has also been forced to increase its rates, as several Nintendo Switch 2 games will retail for $80, and Microsoft recently announced several price increases for Xbox hardware and first-party games.
For its full fiscal year, Sony reported a 43% boost in operating income for its Games & Network Services division, reaching an impressive $2.8 billion profit. In total, 18.5 million PS5 consoles were sold--a decline when compared to 20.8 million in the 2024 financial year--and software sales have increased by 14% to $17 billion.
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CEO Hiroki Totoki did mention that some PS5 console manufacturing could be moved to the US--most of its consoles are produced in China and are subject to a 30% tariff for now--as this would be "an efficient strategy" to avoid being caught in the crossfire of US President Donald Trump's tariffs.
"This hardware can be produced locally," Totoki said during the earnings call via a translator. "I think that would be an efficient strategy. PS5s are being manufactured in many areas. Whether it's going to be manufactured in the US or not, it needs to be considered going forward."
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
So far, the US has escaped PS5 price increases that have hit other markets around the world. Recently, Sony increased the price for the digital and standard editions of the PS5 console in the UK, Europe, Australia, and New Zealand due to a combination of factors like inflation, exchange rates, and macroeconomic trends. The price of the more-expensive PS5 Pro wasn't increased, while the PS5 disc-drive price was decreased. While some electronics are exempt from the high tariffs levied on China, game consoles aren't currently included.
Sony's competition has also been forced to increase its rates, as several Nintendo Switch 2 games will retail for $80, and Microsoft recently announced several price increases for Xbox hardware and first-party games.
For its full fiscal year, Sony reported a 43% boost in operating income for its Games & Network Services division, reaching an impressive $2.8 billion profit. In total, 18.5 million PS5 consoles were sold--a decline when compared to 20.8 million in the 2024 financial year--and software sales have increased by 14% to $17 billion.
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