Tensions are rising in the United States due to the increasing number of tariffs, which has directly impacted companies across various sectors. One of those affected by these tariffs is Sony. The Japanese company recently announced a price increase for the PlayStation 5 in the United States, causing discomfort to consumers. These changes will be implemented in the coming days.
PS5 will see a price hike in the US under new tariffs
A $50 price increase is expected for Sony’s PlayStation 5 game consoles. The company has been making efforts to mitigate the price increase in the video game market as much as possible, but the current global scenario is challenging, with the tariff increase imposed by President Donald Trump on foreign products.
Most of the country’s trading partners have been harmed by this new trade practice. Japan, for example, is suffering from a 15% tariff on its products sold in the United States. Earlier this year, Sony had already increased the price of its consoles in Europe and the UK due to rising exchange rates and inflation. Now, with this increase in the US, the country fears that the increased costs will drive away consumers.
The PlayStation 5 has three different consoles, but they will receive a similar increase. The Pro version, the most expensive, will now have an estimated retail price of $749.99. The gaming brand’s base model will cost $499.99 in the country. The company has assured that the retail prices of specific PlayStation 5 accessories will remain unchanged. These price changes will be implemented in the US starting August 21st.
US tariffs create domino effect
Not only has Japan been affected, but also other countries and companies that are parties to trade agreements with the United States. Besides Sony, other companies in the technology and gaming sector are also facing the same delicate situation due to high US taxes.
Microsoft, the maker of Xbox consoles, has also suffered from the economic crisis caused by US taxes—despite being an American company—and has increased the price of its products in several countries, both consoles and games. The situation has been dire for many other sectors, and major companies have been warning in recent months about the impact these tariffs would have on their products.
“For some imported goods, tariffs are significantly higher today than they were at the same time last quarter. So, as you would expect, there will be some modest price movement in some categories, but it won’t be widespread,” — Richard McPhail, to the Wall Street Journal.
Impacts on consumers and the gaming industry
This increase in the price of the PlayStation 5 in the United States, beyond just gamers, affects the competitive balance of the gaming market. In a scenario where tariffs are high and costs are passed on to consumers, there is a risk of a decline in demand. This could lead to a migration of some consumers to more affordable alternatives, such as computer games or previous-generation consoles.
Challenges in a changing market
Smaller developers are expected to suffer from reduced profit margins, which would compromise the diversity of available titles. The new commercial policies have already had repercussions and could have a direct impact on the strategies of large companies, as well as on the daily lives of thousands of consumers.
In Sony’s case, it’s understood that keeping its consumer base engaged (as Kia is doing in the motoring market) will be a challenge. Meanwhile, the company is seeking alternatives to face a market that is being pressured by rising costs and a competition that is also trying to adapt. This new measure reinforces the need to closely monitor the market’s economic changes, which influence even leisure time.