Sony just fired the first flare. The outfit confirmed on Monday that prices for its PlayStation 5 consoles would rise by around 25 per cent in the UK, Europe, Australia, and New Zealand.
Sony blamed “challenging” economic conditions, but the root cause runs deeper—tariff confusion, airfreight headaches, and supply chains battered by shifting US trade policies.
The US government said over the weekend it would temporarily exempt electronics from its sweeping new import tariffs. However, the grace period looks short, with the White House suggesting that a tougher long-term stance is brewing.
Zero100 vice president of research Geraint John warned: “President Trump’s decision to exempt smartphones and computers from sky-high US import tariffs may provide only temporary relief for Apple, Google, Dell and other consumer electronics companies.”
“They remain hugely dependent on China, along with Vietnam and India, for manufacturing, so any increase in tariffs on these countries above the current 10-20 per cent level is likely to see consumers paying more for their devices.”
John said Sony’s move could be just the start: “Sony’s decision to raise prices for its PlayStation 5 by around 25 per cent, including for European customers, could be the first of many such announcements over the next few weeks.”
He added that airfreight reroutes, murky policy direction, and rising costs are making companies unable to confidently plan forward production.
“Such factors reduce supply chain efficiency and may exacerbate the upward pressure on prices.”
Quilter Cheviot global tech analyst Ben Barringer said the “tariff rollercoaster” weighed heavy on the sector. “Things are moving very quickly, so whether or not this is the settled position remains to be seen,” he said.
He noted investors would be watching closely as earnings season kicked off: “The actual impact on earnings remains to be seen… we could actually see some earnings go up in the short-term as companies stockpile semiconductors and other tech equipment.”
Barringer reckoned some big names could cut private deals with the White House. “This confirms that technology and much of the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) will be treated differently regarding tariffs,” he said.
“While they may not get a full exemption, it does hopefully mean the impact will be lessened,” Barringer added. “It is still like pinning the tail on donkey, but it is becoming much clearer to work out how exactly the likes of Apple and Nvidia will be impacted.”
