Sony Indicates PS5 Prices May Go Up Soon Due To Trump's Tariffs

Sony recently released its quarterly earnings report, which spotlighted the impact of Trump's tariffs on both production costs and pricing strategies. Sony's CFO, Lin Tao, mentioned that the company needs to secure an additional 100 billion yen, approximately $500 million USD, due to these tariffs. Here's what he stated:

"In terms of the tariffs, we are not just simply calculating the simple tariffs [prices] to come up with 100 billion yen, but are thinking about the current available information and looking at the market trend, we may pass the price and also shipment allocation. So we are taking different measures in managing to come up to the 100 billion yen."

"Passing the price" implies that these costs might be transferred to consumers, potentially leading to a price increase for hardware such as the PS5. Interestingly, Sony's CEO, Hiroki Totoki, hinted at the possibility of manufacturing hardware in the US, aligning with Trump's tariff objectives. However, this move is complex and time-consuming, and the fluctuating economic and tariff environment adds further uncertainty. Just this week, Trump reduced tariffs on China from 145% to 30%, a significant drop but still impactful for Sony, given its substantial hardware production in China, where the previous tariff was 10%.

What might a PS5 price increase look like? Although not explicitly stated, we can draw parallels with recent Xbox hardware price adjustments, which saw substantial increases:

• Xbox Series S 512 GB – Increased from $300 to $379
• Xbox Series S 1 TB GB – Increased from $350 to $430
• Xbox Series X Digital – Increased from $450 to $550
• Xbox Series X – Increased from $500 to $600
• Xbox Series X 2TB - Increased from $600 to $740

These adjustments ranged from $80 to $140 per unit. If Sony were to implement similar increases, the PS5 could see the following price changes:

• PS5 Slim Digital - From $449 to approximately $550
• PS5 Slim Disc - From $500 to approximately $600
• PS5 Pro - From $700 to at least $800, doubling the launch price of the PS5.

These are merely speculative figures, as Sony has not officially announced any price hikes for the PS5, despite considering them. While Xbox faced criticism for its price increases, it seemed inevitable that Sony would follow suit with its PlayStation hardware. We may be approaching the moment when such changes are implemented.

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