According to Sony PlayStation, Could Get Expensive Due to Trade War
The PlayStation most popular and demandable product among gamers worldwide. Sony manufactured various electronics products, including PlayStations. The company reached the remarkable milestone of selling 100 million units of PlayStation. It is expected that PlayStation could see a price hike due to the ongoing tariff battle between China and the United States countries. Sony shifted more product manufacturing to China from the last few years. Many products built in China country, including PlayStation systems. Sony warned that PlayStation consoles could become costly if the Donald Trump government goes ahead with high tariffs on many Chinese exports. The US government increased tariffs from 10% to 25% on $200 Billion worth of Chinese products from last May month. Now threatening to extend tariffs to an additional $300 Billion of Chinese exports including video game consoles.
Sony Company is in a tough position. Gaming consoles like PS4 are typically sold at thin profit margins. The company expected to make money back on game and service sales. The ongoing trade dispute between China and the US, resulting in increasing prices of PlayStations. The trade war comes when PS5 is near for launching. In June, Nintendo, Microsoft, and Sony companies sent a letter to the US Trade Representative’s Office requesting for video game products to be excluded from future tariffs.
Nintendo Co., Ltd. started shifting production of its new Switch models from China to Vietnam, Southeast Asia to prevent possible future tariffs. Many electronics companies, including Apple and others, have shifted more of its manufacturing to China. However, neither Microsoft company nor Sony made any moves yet. If the trade war continues consumers across the globe affected by the trade war between the two countries, such as the US and China. The firm decision has not yet been made about tariffs being expanded to other products. US and China may resume trade talks, but there is still chances of bad impact of tariffs on the games industry.