Sony Says It May Have To Raise PlayStation Price If U.S. Inc
As the trade war between the United States and China continues, video game hardware manufacturers continue their efforts to convince the U.S. government to reconsider any new tariffs on China. Sony has now warned that it may need to raise the retail price of PlayStation consoles if the U.S. government decides to go through with its trade war with China.The Wall Street Journal reports that Sony has warned the U.S. government that imposing higher tariffs on China will hurt U.S. customers. "We believe, and therefore have told the U.S. government, that higher tariffs would ultimately damage the U.S. economy," Sony's chief financial officer Hiroki Totoki said in a statement.The U.S. and China are meeting again this week to try and find a solution to the trade issue affecting the two countries. However, video game manufacturers remain nervous. Last month Sony, Nintendo, and Microsoft joined forces to send the U.S trade representative's office a joint letter urging the U.S. government to consider the effects higher tariffs will have on the video game industry. And with a new console generation on the horizon, it's unclear how tariffs could effect retail prices on next-gen consoles.Original story follows...Earlier last week, Nintendo, Sony and Microsoft all petitioned the US government to reconsider their stance on tariffs placed on goods imported from China to the US.The trio of video game and console developers issued a joint statement responding the USTrade Representative’s request for public comments regarding the implementation of said tariffs, saying “We respectfully request that the Administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products.”The tariff is being proposed by the Trump Administration as part of the wider economic stand-off between the United States and China and would include a 25% increase on video game consoles, controllers, arcade machines, and even board games. The trio of console manufacturers explain in their letter that "while we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals."
Increased Tariffs, Reduced SalesThe companies claim that the increased tariffs would not only mean higher costs for their audiences, but that the increase could potentially affect not just the console manufacturers themselves, but the 65,000-odd game developers in the United States as well. "Reduced video game console sales unquestionably will lead to reduced sales of games, which is highly likely to have a deleterious effect on the small and medium-sized businesses that make these games, and on the workers whom they employ."Of course, the big question is what sort of effect these tariffs may have on US consumers. The letter claims that "a price increase of 25% will likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season. For those purchases that do go forward despite tariffs, consumers would pay $840 million more than they otherwise would have. ... Even after accounting for new tariff revenue, the result is a net $350 million loss for the U.S. economy for each year the tariffs remain in effect, with the burden carried by U.S. consumers."
Stadia and xCloud avoiding the Tariff?What say you? Are you willing to pay an extra $100 on a $400 console, or will this just be another reason to get on the streaming bandwagon with services like Google Stadia or Microsoft xCloud? Let us know in the comments and for more updates on all the newest consoles, regardless of their cost, stick around on IGN.JR is a Senior Editor at IGN and would really love to not pay $700 for a PS5. He'll probably still do it and complain about eating ramen for two years on Twitter.关注无极荣耀官网（www.laicachina.com.cn）。