Sony is contemplating price increases for its products due to the significant financial impact of tariffs on its operations. The company released its financial results for the fiscal year ending March 2025, and during a subsequent investor Q&A session, executives elaborated on how Trump's tariffs are affecting their business.
Sony's Chief Financial Officer, Lin Tao, stated that the tariffs could result in a 100 billion yen (approximately $685 million) impact on the company, assuming the currently announced tariffs remain in place. Given Sony's substantial involvement in hardware manufacturing, including the PlayStation 5, the tariffs pose a notable challenge. Tao suggested that Sony might pass some of these costs onto consumers by raising the prices of its hardware, 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 explained during the investor webcast. He emphasized that Sony is implementing various strategies to manage the financial impact.
Sony's CEO, Hiroki Totoki, specifically addressed the PlayStation, mentioning that the company is considering manufacturing consoles in the U.S. 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 have told IGN that they anticipate Sony will follow the example set by Nintendo and Microsoft and increase game prices to $80. There's also speculation that the PS5, especially the PS5 Pro, might see a price hike, prompting some consumers to purchase the console before any official announcement.
Daniel Ahmad, director of research and insights at Niko Partners, noted that Sony has already raised console prices in certain regions but has been hesitant to do so in the U.S. due to its significance in the console market. "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 insight into Sony's situation. "PS5 hardware is predominantly manufactured in China, exposing Sony's supply chain to greater risk from tariffs originating from the U.S.," he said. "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 also pointed out that with Microsoft having recently adjusted its prices, Sony might feel compelled to follow suit with the PS5. "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."
