Sony Interactive Entertainment has announced a price increase for all three models of its PlayStation 5 consoles in the United States due to ongoing challenges in the economic landscape. The newly announced pricing arrives as Sony tries to tread waters made murky by the trade war tariffs affecting many, if not most, imported consumer electronics.
Beginning on August 21, the new, all-digital version of the PlayStation 5 will arrive on shelves at $399.99. That price represents a $50 (£37.16) jump. The higher-end Pro version will now start at $749.99. Isabelle Tomatis, the vice president of global marketing at Sony Interactive Entertainment, stated, “We’ve made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US.”
The decision follows remarks from Richard McPhail, Sony’s finance chief, who highlighted the impact of tariffs on the company’s pricing strategy. Japan’s exporters, even companies like Sony who’ve been mentioned in this context, start with a built in 15% tariff on goods sold to the United States. These tariffs, put in place by former President Donald Trump, have recently come under attack in light of increasing expenses for businesses.
“For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” – Richard McPhail
Sony isn’t the only company to announce price hikes as a result of these tariff pressures. Nintendo has raised prices on its original Nintendo Switch console, while Adidas warned that US tariffs would impose an additional €200 million (£173 million, $232.9 million) burden. Home Depot is already on record as saying that prices on some of their products will be impacted by new import tariffs.
Despite the price adjustments for the PlayStation 5 consoles, Sony confirmed that recommended retail prices for accessories will remain unchanged. On first inspection, this strategic move seems to balance keeping a competitive advantage while tackling pressure on costs caused by tariffs.
McPhail elaborated on the broader implications of these tariff increases, stating, “So as you would expect, there will be modest price movement in some categories, but it won’t be broad based.”
As further context, these new price changes for PlayStation 5 consoles are set to only impact the United States. No news yet on announcement of price changes in other countries. The economic landscape has shifted drastically. To counter the impacts of inflation and other external factors, corporations like Sony need to change their pricing policies.