Sony Considering Price Rises Amid $685 Million Impact on Its Business From Tariffs — Could the Cost of PS5 Go Up?

Sony has announced it is contemplating price increases due to the significant impact of tariffs on its operations. The Japanese electronics giant revealed its financial performance for the fiscal year ending March 2025, and during a subsequent Q&A session with investors, executives delved into the effects of tariffs imposed by the Trump administration.

Sony's Chief Financial Officer, Lin Tao, highlighted that tariffs could cost the company approximately 100 billion yen (around $685 million), primarily because of Sony's extensive involvement in hardware manufacturing, including the PlayStation 5. In response to these financial pressures, Tao suggested that Sony might pass some of these costs onto consumers by raising 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 explained during the investor webcast. "So we are taking different measures in managing to come up to the 100 billion yen impact."

Sony's CEO, Hiroki Totoki, specifically addressed the PlayStation, indicating that Sony is exploring the possibility of manufacturing consoles in the U.S. to circumvent tariffs. "These hardware of course can be produced locally," Totoki stated. "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 Tariffs. "It needs to be considered going forward" pic.twitter.com/c1cEQIwXA4

— Destin (@DestinLegarie) May 14, 2025

Analysts have shared with IGN their expectations that Sony might follow the pricing strategies of Nintendo and Microsoft, potentially raising game prices to $80. There's also speculation that the PS5 family of consoles, especially the PS5 Pro, could see a price increase, prompting some consumers to purchase units before any official announcement.

Daniel Ahmad, director of research and insights at Niko Partners, noted Sony's recent price adjustments in various regions and suggested that the U.S. might soon follow suit. "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, a senior analyst at Omdia, pointed out that the PS5's manufacturing in China leaves Sony vulnerable to U.S. tariffs. "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 mentioned that with Microsoft having recently adjusted its prices, it paves the way for Sony to possibly increase the PS5's price in the U.S., the world's largest console market, which has typically been spared such increases except for a $50 rise in the PS5 Digital Edition in late 2023.