Sony Warns PS5 and PS4 Will Cost More If U.S. Increases China Tariffs
PlayStation products, including PlayStation 5 and PlayStation 4, could soon cost more money for [...]
PlayStation products, including PlayStation 5 and PlayStation 4, could soon cost more money for consumers if President Trump and the United States continue and expand their current tariffs against China. According to Sony, if a higher tariff is greenlighted on Chinese-made videogame machines, then Sony will be left with option to past some of the added expense onto the U.S. retail prices. In other words, your PlayStation 5 may cost more money than originally planned, because most of Sony's console manufacturing is contracted and based out of China.
"We believe, and therefore have told the U.S. government, that higher tariffs would ultimately damage the U.S. economy," said Sony finance chief Hiroki Totokisaid.
As you may know, the U.S. and China are continuing their trade talks this week, so everything is currently up in the air. In may, Trump put some pressure on China by increased import tariffs on $200 billion of Chinese goods. This was a 15% increased. And if negotiations fall apart, Trump says he'll place an additional tariff on $300 billion of Chinese exports, which is going to make selling PlayStation consoles in the United States more expensive for Sony.
At th moment, Sony hasn't committed to a course of action if the tariffs are expanded, but has noted it's studying its option, which includes asking consumers to eat some of the cost with increased prices. According to Mr. Totoki, to date, tariffs haven't impacted Sony very much, but it remains vigilant.
As you may remember, back in June, Sony, Microsoft, and Nintendo all penned a letter speaking out against the tariffs.
"A price increase of 25% will likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season," read the letter. "For those purchases that do go forward despite tariffs, consumers would pay $840 million more than they otherwise would have.
"While we appreciate the Administration's efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals."
As always, feel free to leave a comment with your thoughts or hit me up on Twitter @Tyler_Fischer_ to talk all things gaming.