Sony is Increasing Its PS5 Shipments

Sony is Increasing Its PS5 Shipments



Summary

  • Sony is increasing PS5 shipments to the US to counter potential tariffs.
  • The PS5 sold a record 9.5 million units during the 2024 holiday season.
  • Nintendo is also expecting minimal impact from tariffs on the Switch 2’s price thanks to swift action on the part of the company.

Sony is ramping up the number of PlayStation 5 consoles it ships to the US to offset the impact of incoming tariffs. The threat of high import duties has loomed over the gaming industry for a few months now, and while no such sweeping change has taken effect yet, electronics manufacturers are approaching the future with caution. For Sony, that means bringing more PlayStation 5 consoles to the states before any tariffs make doing so more expensive.

Despite the current console generation nearing the end of its life, Sony’s latest system remains a big piece of its ongoing financial success. The PS5 sold a record 9.5 million units during the 2024 holiday season, marking its strongest-ever quarter and a 1.3 million-unit increase over the year prior, likely due, at least in part, to the launch of the PS5 Pro. Given that performance, it makes sense that Sony would hope to keep sales figures strong by avoiding any unexpected price hikes in the future.

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Sony’s fiscal year 2024 Q3 earnings call outlined the company’s approach to proposed tariffs. According to the presentation, Sony has been stockpiling inventory in the US and duplicating some supply chain operations to give it more flexibility if needed down the line. Because of these moves, the electronics giant is confident that any financial impact from US tariffs in the next year will be minimal. That’s good news for gamers, considering that earlier reports suggested the PS5 Pro could cost as much as $1,000 in the future, depending on how the proposed import duties play out.

Sony Is Importing More PS5 Units to Offset Potential Tariffs

While the earnings report did not specifically mention the PS5 in its tariff response strategy, it did say the increased safety stocks are to protect its Game and Network Services segment, among others. The PlayStation 5 and all its first-party peripherals fall under this branch, so that’s likely at least part of what Sony meant when it referred to “strategic inventory.” A different part of the presentation also said Sony was managing PS5 inventory “at an appropriate level,” which could play into its US strategy. It’s not the only company to respond this way, either, as Nintendo said it expects minimal impact from tariffs on the Switch 2’s price, thanks to manufacturing adaptations ahead of time.

The level of tariffs the US could impose and how such action will impact the video game industry has yet to be seen. Not long after the last election, Walmart said it may need to raise prices if tariffs get high enough, which could apply to consoles, but anticipatory steps from companies like Sony and Nintendo may be enough to offset these price hikes, should they occur. For now, the future remains uncertain, but console manufacturers are adjusting their strategies just in case.

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