Sony Entertainment is contemplating price hikes for its products in response to projected losses of approximately 100 billion yen (around £513 million) due to impending US tariffs. This revelation emerged during the company’s recent investor call, coinciding with their financial results announcement.
As it stands, Sony possesses a substantial inventory of PlayStation 5 (PS5) consoles in the United States, estimated to last about three months. However, executives are currently assessing the feasibility of transferring these additional costs to consumers.
In a notable development, the company recently implemented a £40 (€50) increase for its main digital-only PS5 model across the UK, mainland Europe, Australia, and New Zealand. This marks the second price adjustment in the UK for the PS5 during this generation, following a similar increase that took place in 2022.
Japan also experienced its own price hike for the PS5, announced in August 2024, which has raised the console’s price by around £170 from its initial launch cost.
At this point, no price hikes for the PS5 have been confirmed for the US market; however, the situation remains changeable. Notably, the more premium PS5 Pro has not yet experienced a price adjustment in the UK or other regions.
One strategy under consideration for Sony could involve raising prices on its other electronics, potentially offsetting losses incurred from the PS5. With the console currently leading the market over Xbox, the necessity for aggressive pricing may not be as pressing.
Interestingly, the US recently eased its tariff policy concerning China, which offers a temporary reprieve. An agreement to reduce tariffs is outlined for at least the next 90 days, prompting tech firms to reevaluate their strategies. For instance, Nintendo plans to manufacture its upcoming Switch 2 consoles in Vietnam for the US market.
Hiroki Totoki stated that relocating some PS5 production to the United States is a possibility, as a means of enhancing operational efficiency. “Producing hardware locally could streamline the process,” Totoki remarked, although he emphasized that final decisions are still pending.
In a wider industry trend, Microsoft has already announced price increases for its Xbox Series X and S consoles. Meanwhile, Nintendo has escalated prices for several Switch 2 accessories, hinting at a potential increase for the console itself following its launch.
