The Office of the United States Trade Representative recently published an extensive list of goods categories that are being considered for new import tariffs. The proposed tariffs are as high as 25% on goods which are imported from China. The list is varied, but it could have a huge impact on prices of the PlayStation 5 and other games consoles.
This is because the document includes “video games consoles and machines” in its list. If the tariffs are put in place, any consoles made in China and exported to the US will be hit with the charge, driving up prices.
Sony has a manufacturing plant in mainland China, so its console products are likely to be directly affected if the proposed change moves forward. While it’s commonly known that consoles such as the PlayStation 4 and Xbox One X are often sold at a loss, with their manufacturers recouping the cost in software sales, a 25% tariff is a large amount extra to make up. It’s likely that at least some of this cost will be passed down to consumers.
The hearing for the proposed tariff is due to take place on June 17th, and the tariffs could come into effect as soon as a week later, on June 24th.
This means that players could potentially see gaming console prices rise quite quickly. Not only that, but there is likely to be a large impact on the prices of the next generation of consoles, including the eagerly awaited PlayStation 5.
Microsoft is also rumored to be unveiling a new console very soon, which would likely be affected by the proposed tariffs as well.
For players asking how much the PlayStation 5 will cost, the answer may well be higher than expected. If the tariff changes pass in next month’s hearing, gamers need to be prepared for higher than expected prices across the next generation of consoles. There may also potentially be a future freeze, or even increase in current generation console prices, to account for the tariff.
It remains to be seen if the tariff passes and the full effect it will have on console gamers. We won’t know for certain until next month, after the hearing for the proposal takes place.