Menu

Potential PlayStation 5 Price Increase in U.S. Due to Tariffs

The PlayStation 5, expected for release during the holidays of 2020, may be getting a little more expensive. For well over a year, the United States has been increasing its tariffs with China in an attempt to bring in higher revenue from trade with the country; the next tariff move could mean higher prices for PlayStation consoles. If scheduled negotiations don’t go well, U.S. President Donald Trump is looking for a 150% increase in tariffs that will cover video game products from China.

The Wallstreet Journal reported on this yesterday that “Last month, Sony together with rivals Nintendo Co. and Microsoft Corp. submitted a letter to the U.S. trade representative’s office to make the case against tariffs.” Sony’s CFO, Hiroki Totoki, has made it clear that implementation of these tariffs will not necessarily end with an increase in prices, but they are exploring the option, as well as many others.

Hiroki Totoki

It’s no secret within the gaming industry that the next generation will likely be the most expensive one yet, even without the introduction of new tariffs. Both the PlayStation 5 and Microsoft’s Project Scarlett are slated to hit the market with the latest and greatest GPU/CPU combination for consoles to date. They are also receiving solid-state drives (SSD) instead of traditional hard disk drives (HDD).

For those uneducated about the differences, HDDs use physical arms and disks to read and write data. SSDs generally come smaller and rely on electrical currents for data storage. SSDs are faster and more reliable because of this, but it comes at a literal price. The current cost for a typical 2 TB HDD hovers around USD $115, while SSDs come in at anywhere from $220 to $500. This won’t necessarily reflect the true difference in price from the PS4 to the PS5, but it shows the significant increase in price for Microsoft and Sony to make these consoles.

Yet another reason to increase the prices of these consoles is the last thing gamers need right now. This could potentially push the boundaries of what a lot of people are willing to pay for their gaming hardware. While the consoles, especially the PlayStation 5, will certainly sell plenty well, it’s easy to see how initial sales in the U.S. could be down thanks to these tariffs. It’s also possible that this could all be a relative wash, as PlayStations will likely cost the same in most other countries. It’s not exactly uncommon for people to buy a console from an online marketplace from a different country due to cheaper prices.

No comments

Leave a Reply

Newsletter

Nintendo Direct Mini Partner Showcase September

Watch the Nintendo Direct Mini: Partner Showcase Tomorrow

Nintendo just announced another Nintendo Direct Mini: Partner Showcase, which will place on September 17, 2020, at 7 AM PST. The last Nintendo Direct Mini released in August, was only around…

September 16, 2020, 134
Twin Mirror Release Date

Twin Mirror Gets a Release Date, Gameplay Trailer

DONTNOD has put out a new gameplay video for the much-anticipated Twin Mirror along with a release date for the game. Twin Mirror will be releasing on December 1, 2020,…

September 15, 2020, 71
Alien Hominid Invasion title screen

PAX Online – Alien Hominid Invasion First Impressions

Even confined to a virtual environment, PAX is always a conduit for hype, and for this year’s PAX Online, there was hardly a studio I was more excited to check…

September 13, 2020, 366
PlayStation 5 Consoles

Sony Announces PlayStation 5 Showcase Event for September 16th

On a brisk Saturday morning, Sony dropped the megaton announcement everyone has been waiting for: another PlayStation 5 event. Coming off the heels of Microsoft’s Xbox Series S announcement earlier…

September 12, 2020, 173
Undertale 5th Anniversary Concert

Undertale Celebrates 5th Anniversary With Online Concert

It’s hard to believe it, but Undertale is about to celebrate its 5th anniversary since its initial launch on PC. The surprise indie hit gained a large following and critical…

September 11, 2020, 723
Presentation still from Prince of Persia: The Sands of Time Remake, shows the Prince's remade character model facing the audience

Ubisoft Announces Prince of Persia: The Sands of Time Remake

Just a few hours after making a conspicuous and accidental appearance on UPlay, Prince of Persia: The Sands of Time Remake has been formally announced. Quickly becoming one of the more polarizing…

September 10, 2020, 300
Space Robinson Promo Art

Crytivo Blasts Space Robinson onto Nintendo Switch

Crytivo, the indie publisher that’s responsible for The Universim, Turmoil, and Beholder, announced on Thursday that Space Robinsons has arrived on Nintendo Switch. Developer Luxorix Games has put together a…

September 10, 2020, 141
ENDER LILIES Quietus of the Knights Key Art

ENDER LILIES: Quietus of the Knights Coming Winter 2020 as Binary Haze Interactive’s First Title

Brand-new publisher Binary Haze Interactive has revealed its first project, ENDER LILIES: Quietus of the Knights. The game focuses on a dark atmosphere and narrative, the center of which is…

September 10, 2020, 427
Xbox Series X Release Date

Xbox Series X Finally Has a Release Date and Price Point

After years of rumors and fierce speculation, Microsoft has finally revealed the release date for the Xbox Series X and Xbox Series S on Twitter. This comes right off the…

September 9, 2020, 180
There Is No Light Kickstarter

Kickstarter Launched for ‘There Is No Light’ Action RPG

Developer Zelart has officially unveiled a new Kickstarter campaign for their upcoming Action RPG, There Is No Light. The game is described by Zelart as a “grim post-apocalyptic pixel-art action-adventure.” Here…

September 8, 2020, 401