Sony dodges tariffs and ensures price stability on PS5

Carlos, a passionate gamer from Texas, had saved up for months to buy a PS5. However, news about Donald Trump's tariffs put him on alert: what if the price went up just before he could buy it? It wouldn't be the first time trade policy had hit his wallet hard. But this time, the story took an unexpected turn.

In the tech industry, decisions are made at breakneck speed. When Trump announced tariffs that could directly impact consoles made in China, Sony reacted by moving PS5 production out of the country. This move not only avoided the direct impact of the tariffs but also helped maintain a stable supply chain.

The result was so positive that Sony revised its annual profit forecast upwards from $6.3 billion to $6.6 billion. Between April and June alone, the company earned $1.8 billion, a 23% increase over the same period last year.

This increase came not only from consoles, but also from online services and areas such as imaging and sensors, which offset the negative effects of the exchange rate.

CFO Lin Tao explained that, in addition to shifting production, Sony has increased manufacturing capacity to ensure a solid inventory. Peripherals will also stop being manufactured in China by September 2025, thus closing the gap on tariffs.

For gamers, this means greater PS5 availability and a lower risk of price hikes in the US market, something Nintendo couldn't avoid with its Switch.

The key to this masterstroke was anticipation. Instead of waiting for tariffs to impact sales, Sony diversified its supply chain and secured inventory. This move not only protects its margins but also strengthens its image among gamers as a community-minded brand.

If this strategy continues, gamers will be able to enjoy more stable prices until the end of the generation. Furthermore, with increased production capacity, Sony will be able to better respond to demand for future exclusive releases and events like Black Friday, where availability is key to massive sales.

Carlos, the gamer from Texas, was finally able to purchase his PS5 at the price he expected. He wasn't aware of all the logistical and strategic engineering behind it, but he directly benefited. Sony's move demonstrates that, in the video game industry, winning doesn't always mean selling more, but rather knowing how to protect what you already have.