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Sony Eyes PS5 Price Hikes, U.S. Manufacturing to Offset Tariff Impact

Facing a projected ¥100 billion loss from U.S. tariffs, Sony considers shifting production and raising prices to maintain profitability.

FILE - A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. (AP Photo/Eugene Hoshiko, File)
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Overview

  • Sony forecasts flat operating profit growth of 0.3% for FY 2025–26, citing a ¥100 billion tariff impact as a major challenge.
  • The company announced it may pass the tariff costs to consumers by increasing prices on products, including the PS5, though no final decision has been made.
  • CEO Hiroki Totoki revealed that local manufacturing of PS5 consoles in the U.S. is being considered as a strategy to avoid tariffs.
  • Sony raised PS5 prices in Europe, Britain, and other regions last month, but U.S. prices have so far remained stable due to stockpiled inventory.
  • The gaming division remains a bright spot, with a projected 16% profit increase driven by strong first-party game sales, including upcoming titles like 'Ghost of Yōtei.'