Sony preps for $700-million tariff bill and possible PS5 price hike

Video games are a costly pastime, and we're already witnessing elevated prices from Nintendo and Xbox. Unfortunately, there's more troubling news for PlayStation enthusiasts.

During its most recent financial update, Sony's CFO, Lin Tao, disclosed that the company is considering price increases due to the new tariffs imposed by the Trump administration. Although Tao did not specifically mention the PS5, considering that the gaming sector is Sony's most lucrative and that it recently adjusted the PS5 hardware prices upwards in several regions outside the U.S., it's evident that adjustments could be on the horizon. Sony currently markets a version of the PS5 for $700 in the U.S., indicating its familiarity with premium pricing in gaming hardware.

How severely will Sony be affected by these tariffs? According to Bloomberg, the company's earnings report disclosed a $700 million impact due to tariffs. Similarly, another Japanese firm, Toyota, is facing a tariff bill of $1.2 billion.

While a potential price increase for the PS5 may be looming, the ever-changing tariff scenario also renders the future uncertain.

In the earnings discussion, Sony's CEO, Hiroki Totoki, suggested that manufacturing the PS5 in the U.S. could be a strategy to avoid tariffs, as reported by The Verge. However, executing this plan might be more challenging than it sounds. The majority of PS5 units are produced in China, which is currently subjected to at least a 30 percent tariff.

Trump's tariffs have been in place for approximately a month, and the impact on the console gaming industry is already significant. Xbox has implemented comprehensive price increases for its games and consoles in the U.S., a move that was unexpected given that we are five years into this console generation. Nintendo postponed preorders for its upcoming Switch 2 console in the U.S. for a few weeks following the announcement of Trump's tariffs, which coincided with the $450 price reveal for the Switch 2. Although Nintendo eventually resumed preorders without altering the console's price, some hardware accessories saw price increases.

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It's likely that these price hikes will continue as long as the tariffs remain in effect.

UPDATE: May. 14, 2025, 3:23 p.m. EDT This piece has been revised to include further details from Sony's earnings call.

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