Sony announced that it will raise PlayStation 5 prices in the United States by $50 in response to the impact of US tariffs.
Sony Group has increased its forecast for its operating profit for the year ending March 2026 by 8% as it is expecting to earn 1.43 trillion yen (approximately $9.5 billion).
The increased forecast, announced on Tuesday, was due to stronger-than-expected results in its entertainment and semiconductor businesses. It is also due to the lower-than-expected impact from recent US tariffs.
The company’s operating profit during the July-September quarter increased by 10% year-over-year to 429 billion yen, largely due to strong performance in its music business, which includes anime, and its chip business. The company credited the increase in its performance in the music business to its successful release of the animated film “Demon Slayer: Kimetsu no Yaiba Infinity Castle.”
Sony was known for selling electronics, but it has since transformed into a global entertainment giant. In recent years, it has heavily invested in the booming anime industry.
The company’s chip division supplies image sensors to leading smartphone manufacturers. It has posted an increase in its performance due to the growing demand for larger sensors. Sony noted that some customers are increasing their purchases in fear of a price increase due to tariffs.
The company now expects the total impact of tariffs this financial year to be 50 billion yen, an improvement over its previous estimate of 70 billion yen made in August. Sony’s shares closed 5.5% higher. The company also announced a buyback of up to 35 million shares, valued at 100 billion yen.
However, profits in its gaming business reduced in the second quarter, due to the impairment losses from the video game “Destiny 2.” Chief Financial Officer Lin Tao stated that user engagement for the game has not met Sony’s expectations since the company acquired the game’s developer, Bungie.
However, on the other hand, the company sold 3.9 million PlayStation 5 consoles, a slight increase from the previous year.
Tao stated that they aim to expand the PlayStation 5 install base, while maintaining a balance between growth and profitability for the segment.
The company is now looking forward to releasing its premium games, which are expected to increase sales for its consoles. Take-Two Interactive’s “Grand Theft Auto VI” was a blockbuster game that fans have been eagerly awaiting. It was again delayed last week and is now scheduled for release in November next year. The launch is expected to increase the sales for upgrades and new gaming hardware, which will boost performance for Sony’s PlayStation business. In addition, Sony reported strong sales for its recent release, “Ghost of Yotei,” which has sold 3.3 million units since its launch last month.
Nintendo recently raised its annual sales target for the Switch 2 to 19 million units, as the device, launched in June, continues to attract strong consumer demand.
Sony announced that it will raise PlayStation 5 prices in the United States by $50 in response to the impact of US tariffs. The most expensive PS5 Pro will be priced at $749.99. The company stated that the price increase is necessary as it will help in a slow recovery in the video game market and compete with higher costs from tariffs.
Sony previously raised PlayStation prices in several European markets in April, following its rival Xbox’s move in the US, Europe, Australia, and the UK. While the launch of high-profile games and new consoles was expected to increase the market for video games, recent price increases and game delays have raised questions about the pace of that expansion.
Sony clarified there are no changes to PlayStation 5 prices outside the US, and that prices for accessories will remain regular for now.