Sony is contemplating the production of PS5 consoles in the United States as a response to tariff challenges

Image credit: Sony Interactive Entertainment

Sony is contemplating the production of PlayStation 5 consoles in the United States due to the impact of tariffs. This consideration was discussed by Sony's president and COO, Hiroki Totoki, during a call with investors following the announcement of the company's annual financial performance.

Totoki mentioned that while local production of consoles might be a practical approach, this is not an urgent decision. "Consoles [...] of course, can be produced locally,” he remarked, indicating that PS5s are already being made in various regions, including potential future production in the US.

Sony's Chief Financial Officer, Lin Tao, highlighted that PlayStation consoles are being assembled in four different countries, with a significant portion of the manufacturing happening in China. Despite this, the manufacturing facilities have been diversified geographically.

According to Tao, Sony maintains a stockpile of PS5 units equivalent to three months' worth of distribution within the US market. "It's not just China, there are other countries where it is being produced and manufactured," she noted, emphasizing the variability of inventory details and the readiness to distribute.

Sony forecasts sales of 50 million PS5 units for the current fiscal year. Totoki elaborated that the company's strategy is not solely driven by sales figures due to prevailing tariffs and uncertainties. Sony aims for flexibility in distributing units while observing overall market trends.

Discussing potential price changes, Tao indicated that Sony is monitoring market trends and could adjust prices and distribution allocations accordingly.

Reviewing their full-year financial results, Totoki stated that Sony's Game & Network Services sector has shown substantial growth, with net sales climbing by 9% to reach ¥4.6 trillion ($31.5 billion) and operating income increasing by 43% to ¥414.8 billion ($2.8 billion).

Looking ahead, Totoki is optimistic about continued growth and profits in Sony's online and studio segments due to increased user engagement, spending, and upcoming first-party game releases. The lineup includes titles like "Ghost of Yōtei," "Death Stranding 2: On the Beach," and "Marathon."

Sony expects its narrative-driven games to appeal to both fans and newcomers, thanks to their established franchise nature. However, Totoki noted potential risks with "Marathon," Bungie's new extraction shooter, due to its novel genre, though it is reasonably expected to meet forecasts.

Totoki assured that Sony has significant third-party game releases lined up, adding confidence in strong consumer engagement both in terms of console installation and active monthly users (MAU). He confirmed that "Grand Theft Auto 6," anticipated for release in May 2026, was not factored into these forecasts.