Sony has warned that PlayStation consoles will become more expensive if the Trump administration continues with higher rates for more Chinese exports, WSJ reports. The Trump administration, which raised rates from 10 percent to 25 percent for $ 200 billion in Chinese goods last May, now threatens to expand rates to an additional $ 300 billion in Chinese exports, including video game consoles.
In preparation for the possible expansion of the rates, Sony thinks it is now considering the options, including passing on the production costs to its consumers. (The WSJ the price increase is a necessary step if rates go ahead, although a Sony exec clarified that nothing has been decided yet.) "We believe, and have therefore told the US government, that higher rates would ultimately harm the US economy," Sony financial head Hiroki Totoki said today.
Sony worked with Microsoft and Nintendo last month giving a statement at the office of the US sales representative at the proposed rates. The letter states that the rates would significantly disrupt their activities, but that ultimately American consumers and small companies such as video game makers would get the biggest blow. The seven-page letter estimated that consumers would have about $ 840 million in costs that would be shifted directly to them, and 200,000 US jobs would be jeopardized.
In preparation for the possible rates, console makers are starting to confront whether they want to get their production companies from China. Last month, Nintendo began relocating the production of its new Switch models from China to Southeast Asia. However, neither Sony nor Microsoft, which is recent refuted reports of the company that gets the Xbox production from China have already taken steps.
It was reported today that Sony reached PSM revenue of 100 million, making it the fastest home console to reach the milestone. But now that Sony is preparing to release the PS5 in 2020, the sale of the six-year-old PS4 has been delayed. The PS5 has been described as a niche product with serious specifications, which could put its price quite high when it goes on sale; if Trump's proposed rates go ahead, it can be even more expensive.