Sony braces for $700 million in tariffs and a potential increase in PS5 prices.
Video games are an expensive hobby, and we’re already seeing higher prices from Nintendo and Xbox. Now, we have concerning news for PlayStation gamers. In its latest earnings call, Sony CFO Lin Tao confirmed that the company is exploring raising prices due to new tariffs. While Tao didn’t name the PS5 directly, the gaming division is Sony’s most profitable, and the company recently raised prices on PS5 hardware in several regions outside the U.S. a month ago. Sony already offers a variant of the PS5 for $700 in the U.S., so the company is familiar with high prices for gaming hardware.
Just how significant of a hit will Sony take because of tariffs? According to Bloomberg, the company revealed in an earnings report that it’s facing a $700 million impact from these tariffs. Fellow Japanese company Toyota is dealing with a $1.2 billion tariff bill.
However, the news isn’t all bad for Sony. The company expects to sell 15 million PS5 consoles in the next year, nearly matching Nintendo’s forecast for Switch 2 units in the same timeframe.
While a potential price hike for the PS5 could be on the horizon, the rapidly changing tariff situation adds an element of unpredictability. During the earnings call, Sony CEO Hiroki Totoki also mentioned that the PS5 could theoretically be manufactured in the U.S. to avoid tariffs, though this may be easier said than done. Most PS5s are manufactured in China, which currently faces at least a 30 percent tariff. With tariffs having only recently come into effect, the console gaming space is already feeling the pressure. Xbox games and consoles have seen widespread price hikes for U.S. gamers, a surprising move considering that we’re five years into this console generation. Nintendo also recently delayed preorders for its upcoming Switch 2 console in the U.S. for a couple of weeks, coinciding with the announcement of tariffs on the same day as the $450 price point for the Switch 2. Eventually, Nintendo reopened preorders without adjusting the console’s price, although some hardware accessories did see increases.
It’s clear that these price hikes are likely to continue until the tariff situation stabilizes.
UPDATE: May. 14, 2025, 3:23 p.m. EDT This article has been updated with additional information from Sony’s earnings call.
