The trade war between the United States (US) and China does not seem to reach forseeable end. As a result of the trade war, the price of PlayStation has the potential to soar.
Playstation Pricing Options
According to financial leader of Sony, Hiroki Totoki, a tariff increase for Chinese products implemented by the US would likely to result in PlayStation console prices rising. To counteract this possibility, Totoki considered a number of options.
Options to Take Regarding Playstation Pricing
Increasing the prices to consumers is one of the viable options in Totoki’s plan. “We believe, and (we) has informed the US government that higher tariffs will ultimately damage the US economy,” Totoki was quoted saying this to The Verge.
Sony worked with Microsoft and Nintendo last month to issue a statement to the US Trade Representative’s Office against the proposed tariff. The letter expressly states that the increased tariffs significantly disrupt their business.
The seven-page letter estimates that consumers will be charged an additional 840 million US dollars and 200,000 American workers will be at risk.
In preparation for potential tariffs, Sony is considering moving out their manufacturing plant from China. Last month, Nintendo began moving their Switch model production from China to Southeast Asia.
However, Sony and Microsoft recently denied reports that the company released Xbox production from China. This means that the Japanese console maker hasn’t taken any steps for moving out.