The PS5 family of consoles has enjoyed robust sales, outperforming its competitor, Xbox. However, the looming threat of tariffs imposed by previous US administrations poses a potential challenge to future sales figures.  Sony has announced proactive strategies to combat these tariffs, and the good news is, gamers are unlikely to feel the pinch.

During the company's Q3 FY2024 earnings call, Sony downplayed the immediate impact of import tariffs.  The company emphasized its commitment to "flexible and swift responses to the evolving situation" to prevent PS5 price hikes.

Sony's key strategies include:

Diversifying Supply Chains: By replicating its supply chain – potentially through establishing alternative manufacturing or sourcing channels – Sony aims to reduce its reliance on any single source and circumvent tariff impacts.

Preemptive US Inventory Stockpiling:  By building up a larger inventory of consoles within the United States, Sony can minimize future import costs associated with new tariffs.

These measures are designed to cushion the blow of tariffs and ensure that consumers aren't burdened with additional price increases.

A previous study by the Consumer Technology Association suggested that tariffs could inflate game console prices by as much as 40%. This could theoretically drive the price of a PS5 Pro, for example, from its current level to a staggering $980, significantly impacting consumer affordability.

Given the prevailing market perception that the PS5 and its Pro variant are already premium-priced, further price increases could tarnish Sony's brand reputation.  Furthermore, it's noteworthy that the PS5 Pro is already lagging behind the PS4 Pro's sales performance at a similar point in its lifecycle.  Any tariff-driven price hikes could exacerbate the pressure on Sony.