Sony Raises PS5 Prices In Some Countries By Up To 25% In Anticipation Of Tariffs

On Sunday, Japanese conglomerate Sony Group Corp SONY announced that it had raised the price of its PlayStation 5 console by close to 25% in select markets in Europe, Middle East and Africa (EMEA), Australia, and New Zealand, citing high inflation and fluctuating exchange rates.

The PS5 will cost 500 euros (approximately $569) in Europe and £430 (approximately $569) in the UK from Monday.

In Australia, a standard PS5 with an Ultra HD Blu-ray disc drive costs AU $829.95 (approximately $524), and a PS5 Digital Edition costs AU $749.95 (approximately $475).

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In New Zealand, a standard PS5 with Ultra HD Blu-ray disc drive will cost NZ $949.95, and PS5 Digital Edition will cost NZ $859.95. The move precedes potential price hikes in the U.S..

Last week, reports indicated American consumers could pay up to 30% more for a Switch 2 or PlayStation 5, implying up to $590 for the Nintendo Co NTDOY NTDOF flagship machine or Sony’s PS5 Astro Bot bundle. Both devices are assembled in China and are now attracting a 125% duty for shipments to the U.S.

Bloomberg’s Nathan Naidu expects Sony to struggle to sustain sales of a high-end PS5, while Xbox maker Microsoft Corp MSFT may have smooth sailing given its lesser dependence on production partners subject to higher U.S. levies.

The U.S. accounts for 29% of Sony’s revenue. Sony sold 9.5 million PS5 units in the fiscal third quarter, versus 8.2 million a year ago. It expects fiscal 2024 sales of $88.00 billion or ¥13.20 trillion versus the $81.59 billion consensus. 

President Donald Trump’s announcement of sweeping tariffs on U.S. imports has affected the U.S. stock market as it factors in the reception of higher-priced consumer goods.

Trump decided to pause tariffs on consumer electronics products on Sunday. Japan’s top trade representative, Ryosei Akazawa, will likely visit the U.S. to hold talks.

Price Action: SONY stock is up 1.79% at $23.35 premarket at last check Monday.

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