Sony anticipates a significant financial hit of about $680 million next year due to tariffs, which may lead to increased consumer prices. CFO Lin Tao indicated this possibility during an earnings call, while CEO Hiroki Totoki proposed shifting PS5 manufacturing to the US as an effective strategy to mitigate tariff effects. For the fiscal year ending in March, PS5 shipments declined to 18.5 million, raising concerns for the gaming division predominantly reliant on Chinese manufacturing. The high 30% tariff on imports poses ongoing challenges, unlike the 10% levied on imports from other countries.
Sony CFO Lin Tao confirmed that the company is considering passing on the price of tariffs to consumers to mitigate the impact on its bottom line.
CEO Hiroki Totoki mentioned the PS5 could be produced locally in the US and called it an efficient strategy that needs to be considered going forward.
Over the 12 months ending in March, Sony shipped 18.5 million PS5 consoles, down slightly from 20.8 million the year before.
Despite a 90-day pause and rate reduction, the 30% tariff on imports from China remains higher than the 10% rate for other countries.
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