The PS5’s future in the US is uncertain, and yes tariffs are to blame

Sony has already

increased the price of the PS5
in the UK, Europe, Australia, and New Zealand, and it seems that the US may be next on the list.

During the company’s recent earnings call, Sony CFO Lin Tao stated that tariffs will have a 100 billion yen impact on the company (about $681 million), and that the company is weighing different options to cover the cost of tariffs, including passing the price onto consumers.

“In terms of the tariffs, we are not just simply calculating the simple tariffs 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 consumers] and also shipment allocation. So we are taking different measures in managing to come up to the 100 billion yen.”

While Tao didn’t specifically pinpoint the PS5 as getting a price hike, “pass the price” could mean that consumers will bear the burden of the impact that the

Trump administration’s tariffs
are having on Sony. Given that the PS5 has already faced price hikes in other markets, and the fact that Microsoft has already

increased the price of its Xbox consoles
, a PS5 price hike seems inevitable.

However, it is also entirely possible that Sony decides not to shift the burden of tariffs onto the price of the PS5 in the US, and instead mitigates it to its other electronics, like its TVs or cameras. Sony’s CEO even hinted at another way the company could curtail tariffs in the future.

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Sony could make the PS5 in the US in the future

Sony’s CEO says it “has to be considered”

Another interesting tidbit from Sony’s earnings call was when CEO Hiroki Tokoki mentioned the possibility of producing the PS5 in the US, saying it “can be produced locally” and that would be “an efficient strategy.” Whether the PS5 will be manufactured in the US isn’t clear yet, but Tokoki says it “has to be considered going forward.”

If Sony were to produce the PS5, or any future PlayStation console, in the US, it would curtail some of the tariffs imposed on it. Right now, the majority of PS5 consoles are manufactured in China, where they face a 30 percent tariff when coming into the US. Recently, the US significantly lowered its tariffs on China after agreeing to suspend most tariffs while trade talks are underway.

The Trump administration’s reciprocal tariff on China was set at 125 percent but has now been reduced to 10 percent. However, there is still an additional 20 percent tariff that the US has imposed on China in relation to fentanyl, which brings the total tariff amount to 30 percent at the time of writing.

The tariff situation remains extremely volatile, so it’s no wonder Sony is considering producing the PS5 in the US in the future to avoid the impacts of tariffs now and in the distant future. Sony is likely hesitant to raise the price of the PS5 in the US, as it may cause sales to decline. Sony’s FY24 Q4 financial results reveal that the PS5 has now reached 77.8 million lifetime shipments (sales), with 18.5 million PS5 consoles being sold in the past year (ending in March). That’s down slightly compared to last year when Sony shipped 20.8 million PS5 consoles.

Currently in the US, the PS5 Slim (Digital Edition) currently costs $450, the PS5 Slim (with a disc drive) costs $500, and the PS5 Pro costs $700.

Notably, Microsoft recently announced that it was

raising the price of the Xbox Series X
in the US, and in other countries, by $100, and the Xbox Series S by $80 due to “market conditions and the rising cost of development.” If you’ve been on the fence about picking up a PS5, there’s no time like the present, as the price could go up any day.

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