Latest in Gear

Image credit: Justin Sullivan/Getty Images

Sony warns trade war could lead to PlayStation price hikes

The trade war could have a direct impact on gamers.
Jon Fingas, @jonfingas
07.30.19 in AV
700 Shares
Share
Tweet
Share
Save

Sponsored Links

Justin Sullivan/Getty Images

Sony has more than just the pre-PS5 sales slump to worry about in the near future. Company financial chief Hiroki Totoki has warned that US plans for expanded tariffs on Chinese products could force a price hike on PlayStation consoles. The tech giant is still exploring its options, Totoki said, but passing the costs to consumers was one of them. There hasn't been a firm decision as it's not clear whether or not widened tariffs will apply in the first place -- that depends on the Trump administration's negotiations with China.

The US raised tariffs on $200 billion in Chinese goods back in May, to 25 percent. A further tariff expansion would cover another $300 billion in products, including PlayStation systems.

This leaves Sony in a tough position. Consoles like the PS4 are typically sold at slim profit margins (or even at a loss early on) with the expectation of recouping more money through game and service sales. There might not be much room for Sony to absorb the tariff costs or move production to another country. At the same time, a price increase could lead to even weaker PS4 sales and leave Sony on shaky ground until the PS5's launch, which many expect in late 2020. Short of the US ending its tariff threats, there's no easy answer.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
700 Shares
Share
Tweet
Share
Save

Popular on Engadget

Google is ending support for the Explorer Edition of Glass

Google is ending support for the Explorer Edition of Glass

View
Despite the HQ2 debacle, Amazon will add office space in Manhattan

Despite the HQ2 debacle, Amazon will add office space in Manhattan

View
Apple plans software fix for 16-inch MacBook Pro 'speaker popping'

Apple plans software fix for 16-inch MacBook Pro 'speaker popping'

View
Elon Musk wins defamation trial over ‘pedo’ remarks

Elon Musk wins defamation trial over ‘pedo’ remarks

View
‘Reno 911!’ is coming back as a Quibi exclusive

‘Reno 911!’ is coming back as a Quibi exclusive

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr