The PlayStation 5 (PS5) could soon see another price hike as Sony struggles with the cost implications of rising U.S.-China tariffs. This comes as part of wider industry woes, with rivals such as Nintendo also shifting strategies due to economic challenges.
Sony itself forecast a zero operating profit during the year ended March 2026 in its latest earnings announcement, attributing the lack of growth to the expected ¥100 billion ($680 million) dent from U.S. tariffs. The tariffs as part of sustained trade tensions have had a particularly big impact on Sony’s bottom line, causing price adjustment discussions for consumer offerings, such as the PS5.
Chief Financial Officer Lin Tao stated that Sony is considering several steps to counter the tariff effect. Some of them are possible price hikes, and the possibility of shifting manufacturing plants to the United States. At present, many of the PS5 parts are manufactured in China and so subject to a 30% tariff in the United States, as opposed to a 10% tariff for other countries.
The gaming market as a whole is experiencing the brunt of these economic changes. Nintendo, for example, has come under fire for the price of its new Switch 2 console, which will cost $449.99, about 50% more than the original Switch. The company has also pushed back U.S. pre-orders to gauge the possible effect of tariffs on prices and consumer demand.
Analysts indicate that these cost pressures can result in higher prices not just for hardware but also for software. With rivals like Microsoft already making adjustments to their pricing, Sony could follow suit, which could result in higher costs for consumers in general.
As trade tensions increasingly shape production and pricing decisions, consumers might have to budget for higher expenses related to gaming consoles and software. Sony’s deliberations about the PS5 are representative of general industry tendencies and reflect the intricate interplay between global trade policies and pricing in consumer electronics.