Sony Weighs US Production of PS5 Consoles Amid Tariff Concerns

Sony is exploring the possibility of manufacturing its PlayStation 5 consoles in the United States due to the impact of tariffs. During a recent earnings call, Sony President and COO Hiroki Totoki stated that producing hardware in the US is a consideration for the company's future plans. However, he noted that an immediate decision is not critical at this time. Totoki emphasized the potential efficiency of local production, but also mentioned that PS5 consoles are already being manufactured in multiple regions. Sony's CFO, Lin Tao, highlighted that the company has a diversified supply chain, with a significant portion of PlayStation hardware being produced in China, as well as other countries. The company has a stockpile of PS5 consoles for US distribution, equivalent to three months' worth of sales. Totoki expressed anticipation of selling 50 million PS5 units during the current fiscal year, but emphasized the importance of a flexible approach to shipments due to uncertain market conditions. The company is also monitoring market trends to determine whether to pass on potential price increases to consumers. In its full-year financial report, Sony's Game & Network Services division showed a 9% increase in net sales and a 43% rise in operating income. The company expects stable growth and profits in its network and studio businesses, driven by the growth of monthly active users and the release of upcoming first-party titles, including 'Ghost of Yōtei', 'Death Stranding 2: On the Beach', and 'Marathon'.