Sony says it intends to pass on the impact of US tariffs to PS5 prices soon – should the situation in the United States not improve. The decision appears to be primarily aimed at the American market, but further price increases can also be expected in Europe. We'll explain why.
While Microsoft has just increased the price of its Xboxes in the United States by $100, Sony has revealed how the company plans to offset the exorbitant cost of the increase in American customs duties. The manufacturer expects this disruption to its global supply chain to result in an extremely heavy cost of around $680 million.
Sony's CFO, Lin Tao, is beginning to suggest that these costs could be passed on to consumers. This means significant price increases on the various versions of the PS5. However, the group is still giving itself some time to make its decision, given the unpredictability of the White House's decisions.
Sony seems determined to pass the cost of the customs duties on to consumers
But also and above all because Sony has built up a reserve equivalent to three months of sales in the United States. This period fits in with the 90-day "suspension" of the rate above 100% imposed on all (or almost all) products imported from China. However, this "pause" does not mean that major international firms are not continuing to absorb major additional costs.
Since a 35% customs tariff – the highest in over 100 years – remains in effect for China. What is interesting is that Sony has not yet specified whether the price increases will only target the United States or will also affect other markets. In the past, the company has already raised the price of its consoles several times, including that of the PS5, in particular to pass on costs related to exchange rates – in various markets including the single market.
With the intensity of the American measures, the company could opt for a generalized price increase – capable of avoiding too great price disparities. This is one of the reasons why Sony could soon apply increases in the United States… as in Europe. At the time of writing, PS5 prices are as follows:
- PlayStation 5 Pro: €799.99
- PlayStation 5 Digital: €499.99
- PlayStation 5: €549.99
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