Sony Considering PS5 Price Hikes and Manufacturing in the US Due to Trump’s Tariffs

Sony might increase the price of the PS5 to deal with the financial impact of tariffs. The company recently shared its financial forecast, expecting to lose around 100 billion yen (about $680 million) because of these tariffs. To make up for the loss, Sony is thinking about a few options, including raising prices or even moving manufacturing to the US.

During an earnings call, Sony CFO Lin Tao mentioned the possibility of “passing on” the cost of tariffs to consumers. While Tao didn’t specifically mention the PS5, it’s clear that Sony is considering price hikes to cover the increased expenses. However, it’s also possible that Sony might raise prices on other electronics to avoid making the PS5 more expensive.

The company has already increased the PS5’s price in the UK, Europe, Australia, and New Zealand this year, but not in the US. This new price hike would be in response to tariffs placed on Chinese imports by Donald Trump.

Sony CEO Hiroki Totoki also talked about another potential solution: producing the PS5 in the United States. He said that making the console locally would be “an efficient strategy” that “needs to be considered going forward.” Right now, most PS5 consoles are made in China, but moving production could help Sony avoid high tariffs on Chinese goods entering the US.

The tariffs that Sony is worried about are part of a set of policies that place a 30% tax on goods imported from China to the United States. These rates are much higher than the 10% rate for goods from other countries. Even after a 90-day pause and some reductions, the 30% tariff still applies to gaming consoles.

Sony isn’t the only gaming company facing these challenges. Microsoft has already raised the price of its Xbox consoles by up to $100. On the other hand, Nintendo has chosen to keep the price of the Switch 2 the same for now, even though it’s set to launch next month.

Sony shipped 18.5 million PS5 consoles over the past year, slightly down from 20.8 million the previous year. In total, Sony has shipped 77.7 million PS5s since the console’s launch. However, the continued reliance on Chinese manufacturing makes the company vulnerable to tariff-related losses.

While Sony hasn’t confirmed anything yet, it’s clear that the company is exploring its options. Whether it’s moving production to the US or raising PS5 prices, the goal is to minimize losses while keeping the console accessible. For now, gamers in the US will have to wait and see if the PS5’s price goes up as a result of these ongoing tariff issues.

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