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Sony May Implement PS5 Price Hikes in Response to US Tariffs
SummarySony warned of pricing changes as it faces a more than $680 million USD impact from US tariffs on China, where much of its console parts are manufactured.While no price increases have been confirmed yet, Microsoft's $100 Xbox price hikes offer potential insight into how PS5 pricing may change.On Wednesday, Sony's quarterly earnings call echoed uncertainties in the gaming industry surrounding the US's shifting trade relations with China. Just weeks after competitor Microsoft announced price hikes for its games and Xbox consoles, Sony warned of similar pricing changes as it faces a more than $680 million USD impact.According to a Forbes report, Sony CFO Lin Tao said "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 and also shipment allocation." However, Tao was careful to mention that the company is seeking other avenues to remedy the situation, saying "we are taking different measures in managing to come up to the 100 billion yen."The report also shared that CEO Hiroki Totoki said the company would be open to producing parts in the US instead of China, where it currently hosts significant hardware production. Even as the US and China have made progress on lowering the 145% tariff to 30%, Sony and many other companies would still be affected by the change from 10% to 30%. But how much of the cost Sony would need to pass, and to what products, hasn't been clarified.Microsoft's response to the tariff uncertainties, announced in early May, will push its Xbox Series X prices from $499.99 USD to $599.99 USD, and the Xbox Series S 51 from $299.99 USD to $379.99 USD. In addition to consoles and controllers, the company also plans to lift its first-party game prices from $69.99 to $79.99.Stay tuned to Hypebeast for further updates on gaming industry news. Click here to view full gallery at Hypebeast
Summary
- Sony warned of pricing changes as it faces a more than $680 million USD impact from US tariffs on China, where much of its console parts are manufactured.
- While no price increases have been confirmed yet, Microsoft's $100 Xbox price hikes offer potential insight into how PS5 pricing may change.
On Wednesday, Sony's quarterly earnings call echoed uncertainties in the gaming industry surrounding the US's shifting trade relations with China. Just weeks after competitor Microsoft announced price hikes for its games and Xbox consoles, Sony warned of similar pricing changes as it faces a more than $680 million USD impact.
According to a Forbes report, Sony CFO Lin Tao said "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 and also shipment allocation." However, Tao was careful to mention that the company is seeking other avenues to remedy the situation, saying "we are taking different measures in managing to come up to the 100 billion yen."
The report also shared that CEO Hiroki Totoki said the company would be open to producing parts in the US instead of China, where it currently hosts significant hardware production. Even as the US and China have made progress on lowering the 145% tariff to 30%, Sony and many other companies would still be affected by the change from 10% to 30%. But how much of the cost Sony would need to pass, and to what products, hasn't been clarified.
Microsoft's response to the tariff uncertainties, announced in early May, will push its Xbox Series X prices from $499.99 USD to $599.99 USD, and the Xbox Series S 51 from $299.99 USD to $379.99 USD. In addition to consoles and controllers, the company also plans to lift its first-party game prices from $69.99 to $79.99.
Stay tuned to Hypebeast for further updates on gaming industry news.
Click here to view full gallery at Hypebeast
