Sony expects operating profit to decline by $680 million in the next fiscal year due to increased import tariffs imposed by the Trump administration. The Japanese company plans to offset the costs by shifting production to the United States and raising prices for consumers.
It is possible that Sony will try to maintain the current price of the PlayStation 5 by raising prices in other segments of its business. In the middle of last month, the company announced a price increase for the original PS5 in Europe, the UK, Australia and New Zealand, as well as in the Middle East and Africa.
Previously, Sony CEO Hiroki Totoki mentioned the possibility of producing consoles locally, which should be an “effective strategy” to consider in the future.
Sony shipped 18.5 million PS5s in its last fiscal year, up from 20.8 million units the previous year. Total PS5 shipments reached 77.7 million units.
The company still makes most of the PS5 in China, making Sony’s gaming business particularly exposed to the risks associated with the trade war between Washington and Beijing. After a 90-day pause, the U.S. will begin imposing a 30% tariff on goods from China, significantly more than the 10% Washington charges other countries. Gaming consoles were not included in the exemptions that were provided for some other electronics.
Microsoft has already announced price increases for Xbox consoles and accessories. Only the price of Xbox Game Pass has not changed. The price of Xbox Series X has increased by $100 to $600, and Xbox Series S by $80 to $380.
Nintendo has not yet adjusted the price of the upcoming Switch 2, the console will be released on June 5 and will cost $450.