Sony has announced it is contemplating price increases due to the significant impact of tariffs on its business operations. In its financial report for the year ending March 2025, and during a subsequent investor Q&A session, Sony executives elaborated on how Trump's tariffs are affecting the company.

Chief Financial Officer Lin Tao revealed that tariffs could result in a 100 billion yen (approximately $685 million) impact on Sony, based on the tariffs currently in place. This is particularly relevant for Sony due to its extensive involvement in hardware manufacturing, which includes popular products like the PlayStation 5.

Tao hinted at the possibility of Sony passing some of these additional costs onto consumers through higher hardware prices, potentially affecting the PS5. He explained, “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. So we are taking different measures in managing to come up to the 100 billion yen impact.”

Sony CEO Hiroki Totoki specifically addressed the PlayStation, noting that Sony might consider manufacturing consoles in the U.S. to circumvent these tariffs. He stated, “These hardware of course can be produced locally. 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

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Analysts have indicated to IGN that Sony may follow the footsteps of Nintendo and Microsoft by increasing game prices to $80. There is also speculation about potential price hikes for the PS5 family of consoles, with the PS5 Pro expected to be particularly affected. This has led some consumers to purchase the console preemptively.

Daniel Ahmad, Director of Research and Insights at Niko Partners, commented to IGN that Sony has already adjusted its console prices in regions outside the U.S., but a price increase in the U.S. could be on the horizon. “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, added further context. “PS5 hardware is predominantly manufactured in China, exposing Sony's supply chain to greater risk from tariffs originating from the U.S. 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.

“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.”