On Wednesday, Japanese electronics company Sony revealed that price hikes may be coming for consumers.
The news came not long after American conglomerate Microsoft announced that higher consumer prices on Xbox consoles and games were on the horizon.
While the brand reveals profits from its gaming division have hit new highs — over 124 million monthly active users, 300 million games sold, 18 million consoles sold, and countless microtransactions — Sony’s post-report Q&A session revealed the company anticipates taking a tariff-caused hit.
That hit? $600 million — a significant sum that brand reps said they’re working hard to “find.”
During the meeting, Sony CFO Lin Tao floated the idea of “passing on” the price of tariffs to consumers. “In terms of the tariffs, we are not just simply calculating the simple tariffs [prices] to come up with 100 billion yen, but are thinking about the current available information and looking at the market trend, we may pass the price [to customers] and also shipment allocation,” Tao told shareholders. “So we are taking different measures in managing to come up to the 100 billion yen.”
The brand said three months’ worth of PlayStation 5 inventory is already in the U.S., which might soften the blow initially. Another suggestion from Sony CEO Hiroki Totoki was to relocate console manufacturing to the U.S., a strategy that may help Sony skirt sky-high costs down the road. Totoki explained the hardware “can be produced locally,” which he called “an efficient strategy” that “has to be considered going forward.”
However, long-term logistics issues, like time investments, training for stateside employees, and manufacturing site construction, among other roadblocks, could worsen existing economic conditions.
While the brand didn’t identify its gaming division as a potential tariff target, it has already raised prices outside the U.S.; gamers in the U.K., New Zealand, Australia, and Europe are already experiencing some sticker shock.
Sony’s Latest Financial Report
Full-year (ended March 31, 2025)
- Net sales: $81.8 billion (+7% year-on-year)
- Operating income: $8.1 billion (+23% year-on-year)
- Game & Network Services net sales: $31.5 billion (+9% year-on-year)
- Game & Network Services operating income: $2.8 billion (+43% year-on-year)
Q4 (three-month period ended March 31, 2024)
- Net sales: $19.03 billion (-0.14% year-on-year)
- Operating income: $1.4 billion (+6% year-on-year)
- Game & Network Services net sales: $7.1 billion (-3% year-on-year)
- Game & Network Services operating income: $630 million (-12% year-on-year)
The tech brand relies on China to manufacture its PS5 consoles, but with record-high tariffs imposed on imports from the country by the Trump administration, the brand must determine the best plan of action. However, the company’s idea of the “best plan” likely looks a little different than what consumers might hope for.
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A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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