Sony Weighs Price Hikes as Tariffs Impact Business by $685M: Will PS5 Prices Rise?

Sony has announced it is contemplating price increases in response to the substantial impact of tariffs on its operations. In its financial report for the fiscal year ending March 2025, and during the subsequent investor Q&A, Sony executives elaborated on the effects of the tariffs introduced by the Trump administration.

Chief Financial Officer Lin Tao revealed that tariffs are expected to cost Sony approximately 100 billion yen (about $685 million), a significant figure given Sony's extensive involvement in hardware manufacturing, including the PlayStation 5. Tao indicated that Sony might pass some of these costs onto consumers through higher hardware prices, which could affect the PS5.

"In terms of the tariff, we are not just calculating the simple tariff to reach 100 billion yen, but considering the currently available information and market trends, we may pass on to the price, and also adjust shipment allocations," Tao explained during the investor webcast.

Sony CEO Hiroki Totoki discussed the possibility of manufacturing the PS5 in the United States to circumvent these tariffs. "These hardware can be produced locally," Totoki stated. "I think that would be an efficient strategy. However, PS5 production is spread across multiple regions, so whether to manufacture in the U.S. or not needs further consideration. We are not in a critical situation yet."

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 suggested to IGN that Sony might follow the pricing strategies of Nintendo and Microsoft, potentially increasing game prices to $80. Speculation also surrounds the possibility of a price hike for the PS5 family of consoles, particularly the PS5 Pro, prompting some consumers to purchase it before any official announcement.

Daniel Ahmad, director of research and insights at Niko Partners, noted that Sony has already adjusted console prices in certain regions outside the U.S. "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. due to its importance in console sales. However, we would not be surprised to see Sony increase the PS5's price in the U.S."

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View 14 ImagesJames McWhirter, a senior analyst at Omdia, added that the PS5's manufacturing in China exposes Sony to tariff risks. "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 gives both Microsoft and Sony more time to rely on existing inventories. In 2019, consoles received an exemption from tariffs on goods from China, but this ruling was delayed until August."

"With Microsoft having adjusted prices this week, it now opens the door for Sony to follow suit with the PS5. This decision will be particularly challenging in the U.S., the world's largest console market, which has historically been spared — except for the PS5 Digital, which saw a $50 increase in late 2023."