Sony Raises PlayStation Price In U.S. Due To Tariffs

Technology giant Sony (SONY) is raising the price of its popular PlayStation 5 video game console by $50 U.S. in America due to tariff impacts. Going forward, the price for an entry-level PlayStation 5 Digital Edition will increase from $450 U.S. to $500 U.S., and a PlayStation 5 with a disc drive is going up to $550 U.S. from $500 U.S. Sony’s high-end PlayStation 5 Pro now costs $750 U.S. in America, up from $700 U.S. previously. The PlayStation 5 was first released in 2020.Analysts say that Sony’s price hike is likely due to U.S. President Donald Trump’s sweeping tariff plan first announced in April of this year. Sony’s home country of Japan has been hit with a 15% import tariff on most goods, including consumer electronics.While Sony hasn’t directly attributed the price increase to Trump’s tariffs, consumer companies have been warning for months that higher prices are inevitable.However, Sony said that retail prices for its console accessories such as controllers are not changing.Earlier this month, Sony officials said the company was working on supply chain diversification to help lessen the impact of U.S. tariffs.In May, Sony’s video game rival Microsoft (MSFT) raised the price of its Xbox console. Nintendo delayed pre-orders of its Switch 2 console by a few weeks in April, attributing the delay to tariffs. Analysts note that the price hike on the PlayStation 5 might impact sales during the upcoming year-end holidays. SONY stock has risen 33% this year to trade at $28.12 U.S. per share.