Hiroki Totoki, Director of Sony Financial Holdings Inc., had just stated in a recent press release that PlayStation consoles, current, and future, could potentially become more expensive if the Trump administration keeps the higher U.S. tariffs on Chinese exports greenlit.
The recent statement by the company chief was presumably in support of the company’s latest efforts to stop the tariffs from further affecting the tech market in general. In fact, Microsoft and Sony, as well as other tech companies in a similar predicament, joined together to issue a statement to the U.S. Trade Representative’s Office, stating their opposition against the tariffs.
The companies reasoned that it will significantly affect their business, forcing them to pay even more for productions costs, ultimately causing negative effects to the United States’ game console production-related labor force.
Just in the past few months last May alone, Chinese tariffs on the United States was raised from ten to twenty-five percent covering almost $200 billion worth of exported Chinese goods. If the tariffs are expanded to include the next additional $300 billion worth of Chinese products, it would inevitably encroach into the vast majority of manufactured video game consoles within China.
Sony, much more than other tech companies like Apple or Microsoft, has technically more legitimate reasons to be worried about the effect of the Chinese tariffs to standard business operations. Up until this point, the game console sales by such companies are usually sold at very slim profit margins per unit, with most of the earnings being recouped back via direct game sales and customer service fees.
In fact, a couple of weeks back, Nintendo had even announced plans of diverting its production facilities from China to Vietnam, in order to prevent the Chinese tariffs from reducing a significant portion of the company’s current-generation console sales.
But should things remain unresolved as it is, however, gamers might be looking at an overblown price tag for the future PS5, or worse, even PS4 units retailing at prices much higher than its original starting price in 2013.