Key Takeaways
1. Sony may raise prices for the PS5 and other hardware/software in the US to offset expected tariff losses.
2. The company anticipates a loss of around 100 billion yen (approximately $680 million) in the upcoming fiscal year.
3. CEO Hiroki Totoki mentioned the possibility of relocating PS5 manufacturing to the US to avoid tariffs on imports.
4. Despite challenges, Sony projects an 8% increase in operating income to 1.38 trillion yen (roughly $9.4 billion).
5. PS5 shipments for FY24 are estimated at 18.5 million, showing a decline from 20.8 million units shipped in FY23.
Sony, similar to many other firms, is bracing for a significant effect on its projections for the upcoming financial year due to the ongoing uncertainty surrounding tariffs. Reports suggest that the company might raise the prices for the PS5 and other hardware and software in the US to offset anticipated losses. There are also talks about relocating manufacturing to the US, as the consoles “can be produced locally.”
Price Adjustments Ahead
As stated in a press release from The Verge, Sony might transfer the costs of tariffs onto consumers, indicating that prices for hardware and software in the US could rise. The company expects a loss of around 100 billion yen (approximately $680 million) in the fiscal year. Although the PS5 wasn’t mentioned directly in discussions about price increases, it remains a possibility, especially since prices have already gone up in the UK, Europe, New Zealand, and Australia.
Manufacturing Changes Considered
Regarding production, CEO Hiroki Totoki has reportedly said that the PS5 “can be produced locally,” referring to the US as a way to dodge tariffs on imports from China and Vietnam. Totoki emphasized that this strategy is a practical approach worth considering for the future.
Financial Outlook
Despite facing tariffs, Sony projects its operating income to rise to 1.38 trillion yen (roughly $9.4 billion), representing an 8% increase from the previous year. Additionally, in its recent fiscal report, the company revealed that PS5 shipments reached 18.5 million for FY24, bringing the total to 77.8 million units worldwide as of March 31, 2025. In contrast, Sony shipped 20.8 million units in FY23, indicating a decline in sales for FY24 and hinting at a slowdown in momentum. However, Sony’s Game & Network Services (G&NS) segment has displayed strong results in software, services, and digital content.
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