Sony raises PlayStation 5 prices in U.S. as tariffs start to hit

Price Increase Announcement - Sony announced a price increase for PlayStation 5 consoles in the U.S., with the Digital Edition rising from $450 to $500, the disc version from $500 to $550, and the PlayStation 5 Pro from $700 to $750 [1] Tariff Impact - The U.S. has a 30% tariff on imports from China, and Japan, Sony's home country, faces a 15% tariff. While Sony did not directly link the price increase to these tariffs, consumer companies have been warning of higher prices due to tariffs [2] Economic Environment - Sony acknowledged the challenging economic environment and stated that retail prices for console accessories, such as controllers, have not changed. The company is working on supply chain diversification to mitigate the impact of U.S. tariffs, with console hardware sold in the U.S. produced outside of China [3] Pricing Strategy - Sony officials indicated that their hardware pricing strategy is linked to future competitive strategies and will be flexible based on consumer price sensitivity, total segment profits, lifetime value, and sales potential. Other companies in the industry, like Microsoft and Nintendo, have also adjusted their pricing strategies in response to tariffs [4]