Sony raises the price of PS5 models citing ‘challenging economic environment’ - including Trump’s tariffs

 Starting Thursday, all PlayStation 5 models sold in the United States will see a $50 price increase, Sony revealed, citing the mounting financial pressure from newly imposed tariffs under the Trump administration.

“Similar to many global businesses, we continue to navigate a challenging economic environment,” Sony said in a blog post on Wednesday, announcing the “difficult ​​decision.”

Under the revised pricing, the standard PS5 will now retail for $549.99, up from $499.99. The Digital Edition will be priced at $499.99, and the PS5 Pro will cost $749.99

Sony, a Japanese company, confirmed that prices for accessories will remain unchanged.

President Donald Trump’s new tariffs, which went into effect on August 1, impose up to 25 percent duties on Japanese electronics. The tariffs are part of Trump’s hopes to get companies to move manufacturing to the U.S., which experts say is unrealistic for complex tech.

The tariffs will cost the company $685 million annually, according to IGN.

The company’s CFO, Lin Tao, warned in May that costs would likely reach consumers. PlayStation prices have increased across the world - including Europe and Australasia - but U.S. consumers were spared until now.

VP Isabelle Tomatis also said the they could no longer absorb the burden, leading to the hike.

Sony has moved to diversify its supply chain in recent months, transferring console manufacturing for the U.S. market outside of China to soften tariff impacts.

This price hike aligns Sony with its competitors. Microsoft has already raised Xbox prices, and Nintendo followed suit, delaying Switch 2 pre-orders due to tariffs before later raising the price of its original console.

Trump insisted in an April interview with ABC News that consumer costs are falling and claimed foreign countries, including China, would “eat” tariffs despite economists' warning Americans will face higher prices.

He defended a 145 percent tariff on Chinese goods, which only ended up lasting a month, while dismissing concerns that it would raise costs on essentials like electronics, clothing, and housing.

"You don't know that," Trump told ABC News anchor and Senior National Correspondent Terry Moran when asked about potential price rises. "You don't know whether or not China's gonna to eat it."

"That's mathematics," Moran responded.

"China probably will eat those tariffs," Trump replied. "They were ripping us off like nobody's ever ripped us off… They're not doing that anymore."