Sony May Raise Prices Due to $685M Tariff Impact: Will PS5 Cost More?

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

Chief Financial Officer Lin Tao indicated that the tariffs could cost Sony up to 100 billion yen (approximately $685 million), based on the tariffs currently in place. Given Sony's extensive involvement in hardware manufacturing, including video game consoles like the PlayStation 5, these tariffs pose a substantial challenge.

Sony's CEO, Hiroki Totoki, addressed the potential for local production of PlayStation consoles in the U.S. to circumvent the tariffs. "These hardware of course can be produced locally," Totoki stated, suggesting that while the PS5 is currently manufactured in multiple locations, moving production to the U.S. could be a viable strategy. However, he stressed that no urgent action is required at this stage.

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 shared with IGN their expectation that Sony may follow the pricing strategies of Nintendo and Microsoft, potentially raising the price of games to $80. There is also speculation about a price increase for the PS5, particularly the PS5 Pro, prompting some consumers to purchase units preemptively.

Daniel Ahmad, director of research and insights at Niko Partners, noted that Sony has already adjusted console prices in regions outside the U.S. "Sony has raised the price of its console multiple times outside the U.S.," he said. While there is hesitation to raise prices in the crucial U.S. market, Ahmad believes Sony might eventually do so.

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View 14 ImagesJames McWhirter, a senior analyst at Omdia, pointed out that the majority of PS5 hardware is manufactured in China, making Sony vulnerable to U.S. tariffs. However, he noted that a significant portion of console sales occur in the fourth quarter, giving Sony and Microsoft more time to utilize existing stock. He also mentioned that in 2019, consoles received a temporary exemption from tariffs on Chinese goods, although the ruling was delayed until August.

McWhirter added, "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."