Sony may 'pass on' Trump tariffs to customers, is considering US manufacturing on hardware
Sony told investors that it is considering to "pass on" the cost of the US tariffs imposed by the Trump administration to hardware prices—including the PlayStation 5 and affiliated devices—which is currently projected to be a 100 billion yenimpact.As noted during the company‛s investors call around the fiscal report for the 12 months ended March 31, 2025, Sony CFO Lin Tao said that tariffs include the hardware business, which includes games and semiconductors. This is in reference to the 145 percent tariff imposed on China, where Sony manufactures the majority of its hardware, which includes TVs, cameras, microphones, and of course the PlayStation product line. "We‛re not just simply calculating the tariff to come up with 100 billion yen, but thinking about the currently available information and also looking at the market trend, we might pass on to the price and also shipment allocation, so we‛re taking different measures in managing to come up with the 100 billion figure," Tao said via a translator.As pointed out by senior vice president Sadahiko Hayakawa, the 100 billion figure may not be reflecting this week‛s reduction between China and the US. This is referencing an announcement on May 12 that led to a temporary US tariff reduction of 145 to 30 percent on Chinese imports, which will be in effect for 90 days.Related:In addition, president and CEO Hiroki Totoki answered a question regarding the possibility of moving hardware manufacturing to the US, saying that "these hardwaresof course can be produced locally," and that "it would be an efficient strategy.""But PS5 arebeing manufactured in many areas, whether it's going to be manufactured in the US or not it needs to be considered going forward. We‛re not in such a critical situation," he added.Niko Partners analyst Daniel Ahmad recently noted to Game Developer in an interview that Sony has "some" PlayStation 5 console manufacturing in Japan, but that it's "limited." "That will take months to convert everything for US production," he added.He described Sony as being "one year behind" Switch 2 developer Nintendo in terms of diversifying its manufacturing capabilities, with the bulk of its production taking place in China. Nintendo—which is still grappling with the impact of the Trump administration-imposed tariffs—moved much of its US-focused manufacturing to Vietnam after 2019.Sony noted in its presentation that it is "diversifying" PlayStation 5 manufacturing hubs and stockpiling inventory in the US.Related:Throughout the fiscal year ended March 31, 2025, Sony shipped 18.5 million PS5 consoles, bringing the total to 77.7 million lifetime shipments since November 2020. This is down from last year‛s 20.8 million units. The company saw an increase in sales of non-first-party games, including add-on content, as well as sales from network services, resulting in a nine percent increase in the gaming sector. As noted in the previous quarterly fiscal report, first-party titles sales saw a decline.Despite a decline in sales, Sony has already increased the price of the PS5 in other marketsThe decline in PS5 sales traces back to Sony Q1 FY24's fiscal report back in August 2024, a period in which hardware sales totaled 2.4 million units compared to 3.3 million in Q1 FY23. In November 2024, a report stated that Sony is working on a standalone handheld device capable of running PS5 games on the move—as opposed to the PlayStation Portal, which relies on cloud streaming. The company didn't mention the reported console in its plans for the upcoming fiscal year.Meanwhile, the company raised the price of the PS5 in Europe, Australia, New Zealand, EMEA, and the UK in April of this year as a response to a "challenging economic environment," pointing out "high inflation" and "fluctuating exchange rates" in the announcement post. A few days later, Xbox announced an increase in consoles, accessories, and some upcoming first-party titles.Related:When Sony announced the decline in PS5 sales during Q1 FY24, it said that it was offset by first-party game sales. Now, it's third-party games that helped to tip the scale. After the company won't have a projected revenue from several cancelled live service games, it seems it will have to adapt.Upcoming first-party titles includes Bungie's Marathon and Sucker Punch Productions Ghost of Yōtei, in addition to a multiplayer game with live service elements from new first-party studio teamLFG, which was spun out of Bungie.
#sony #039pass #on039 #trump #tariffs
Sony may 'pass on' Trump tariffs to customers, is considering US manufacturing on hardware
Sony told investors that it is considering to "pass on" the cost of the US tariffs imposed by the Trump administration to hardware prices—including the PlayStation 5 and affiliated devices—which is currently projected to be a 100 billion yenimpact.As noted during the company‛s investors call around the fiscal report for the 12 months ended March 31, 2025, Sony CFO Lin Tao said that tariffs include the hardware business, which includes games and semiconductors. This is in reference to the 145 percent tariff imposed on China, where Sony manufactures the majority of its hardware, which includes TVs, cameras, microphones, and of course the PlayStation product line. "We‛re not just simply calculating the tariff to come up with 100 billion yen, but thinking about the currently available information and also looking at the market trend, we might pass on to the price and also shipment allocation, so we‛re taking different measures in managing to come up with the 100 billion figure," Tao said via a translator.As pointed out by senior vice president Sadahiko Hayakawa, the 100 billion figure may not be reflecting this week‛s reduction between China and the US. This is referencing an announcement on May 12 that led to a temporary US tariff reduction of 145 to 30 percent on Chinese imports, which will be in effect for 90 days.Related:In addition, president and CEO Hiroki Totoki answered a question regarding the possibility of moving hardware manufacturing to the US, saying that "these hardwaresof course can be produced locally," and that "it would be an efficient strategy.""But PS5 arebeing manufactured in many areas, whether it's going to be manufactured in the US or not it needs to be considered going forward. We‛re not in such a critical situation," he added.Niko Partners analyst Daniel Ahmad recently noted to Game Developer in an interview that Sony has "some" PlayStation 5 console manufacturing in Japan, but that it's "limited." "That will take months to convert everything for US production," he added.He described Sony as being "one year behind" Switch 2 developer Nintendo in terms of diversifying its manufacturing capabilities, with the bulk of its production taking place in China. Nintendo—which is still grappling with the impact of the Trump administration-imposed tariffs—moved much of its US-focused manufacturing to Vietnam after 2019.Sony noted in its presentation that it is "diversifying" PlayStation 5 manufacturing hubs and stockpiling inventory in the US.Related:Throughout the fiscal year ended March 31, 2025, Sony shipped 18.5 million PS5 consoles, bringing the total to 77.7 million lifetime shipments since November 2020. This is down from last year‛s 20.8 million units. The company saw an increase in sales of non-first-party games, including add-on content, as well as sales from network services, resulting in a nine percent increase in the gaming sector. As noted in the previous quarterly fiscal report, first-party titles sales saw a decline.Despite a decline in sales, Sony has already increased the price of the PS5 in other marketsThe decline in PS5 sales traces back to Sony Q1 FY24's fiscal report back in August 2024, a period in which hardware sales totaled 2.4 million units compared to 3.3 million in Q1 FY23. In November 2024, a report stated that Sony is working on a standalone handheld device capable of running PS5 games on the move—as opposed to the PlayStation Portal, which relies on cloud streaming. The company didn't mention the reported console in its plans for the upcoming fiscal year.Meanwhile, the company raised the price of the PS5 in Europe, Australia, New Zealand, EMEA, and the UK in April of this year as a response to a "challenging economic environment," pointing out "high inflation" and "fluctuating exchange rates" in the announcement post. A few days later, Xbox announced an increase in consoles, accessories, and some upcoming first-party titles.Related:When Sony announced the decline in PS5 sales during Q1 FY24, it said that it was offset by first-party game sales. Now, it's third-party games that helped to tip the scale. After the company won't have a projected revenue from several cancelled live service games, it seems it will have to adapt.Upcoming first-party titles includes Bungie's Marathon and Sucker Punch Productions Ghost of Yōtei, in addition to a multiplayer game with live service elements from new first-party studio teamLFG, which was spun out of Bungie.
#sony #039pass #on039 #trump #tariffs
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