Sony Mulling Domestic PS5 Production in the US and Price Hikes Amid Tariff Talks

Sony is considering "[passing] on the price" to customers.

Microsoft recently announced price hikes for its Xbox Series X|S family of consoles, games, and accessories, and now Sony is considering following suit. Sony president and COO Hiroki Totoki revealed this during an earnings call where he talked manufacturing challenges in the current political landscape. The United States has been engaging in strategic tariff negotiations with many countries all around the world, including ones that large electronics firms like Sony utilize for cheap labor to build their devices. Totoki said that Sony is considering the possibility of bringing PlayStation 5 production to the United States as a way to bring combat tariffs:

Consoles [...] of course, can be produced locally, I think that would be an efficient strategy. But PS5s are being manufactured in many areas, whether that's going to be manufactured in the US or not.

We want to look at the entire market and try to have a flexible approach to shipment.

Totoki would go on to state that, for now, Sony has three months of PS5 stock available and will reevaluate once it runs dry. However, of more concern to consumers is likely the possibility of PS5 seeing a price hike. Totoki says that Sony is observing "the market trend" and could potentially "pass on the price and also shipment allocation" to customers. For context, PS5 is already a $500 console ($450 if you get a Digital Edition), so to bump prices would be quite an ask for customers.

Will Sony pull the trigger? We'll continue to update as we learn more.

Source: GamesIndustry.biz