The tariffs could have a direct effect on current and upcoming hardware.
While it’s generally a little outside our lane of reporting, there has been an ongoing trade dispute between the United States and China. We encourage you to check out political and economic news sites or papers if you want fuller details on that issue. It does relate to gaming, however, in the same way the possible EU tariffs do. And according to Sony, if the issue isn’t resolved, it could mean more expensive PlayStations.
In an article by the Wall Street Journal, Sony Chief Financial Officer Hiroki Totoki is quoted as being blunt in saying that if the trade disputes aren’t resolved and the tariffs go into effect, it will mean a rise in hardware price. Most of the systems the company has made over the last decade have come from China. Considering the timing, this could also affect the price of the PlayStation 5. He claims the margin on each system is already slim, meaning hikes will have to happen to continue their profit margin. It would “increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions.”
Earlier in the year, Sony united with Microsoft and Nintendo in an open letter to the current United State Administration against the tariffs. As of now, the situation is up and down, without a clear and present path one way or the other, as the parties involved are seemingly deadlocked. We’ll keep you updated as things develop on the gaming side of this.