PS5 and Xbox 2 prices could rise due to the President’s new tariffs
Microsoft/UnsplashA new set of government proposals could see consoles fans in the United States paying more than expected for the new PlayStation 5 and Xbox’s Project Scarlett systems.
Fans are gearing up for the announcements of new consoles from Microsoft and Sony as rumors and speculation mount up, filling the void left by the lack of any official confirmation of announcement.
However, these yet-to-be-released consoles could cost considerably more than initially planned due to new economic plans from the United States that would impact the gaming and entertainment industry as a whole.
Sony won’t be attending this year’s E3 event as the wait for the PS5 rolls on.
According to a report from GameDaily, a new tariff that has been proposed by the US government would see anything that isn’t covered under the current set of tariffs given a hike. If the new proposal is accepted, all of the parts and products, including controllers and consoles, coming from China will face a 25% import tax – a huge increase over the current 10%.
While this may have been expected by some, the rise up to 25% is somewhat surprising. Back in 2017, it was reported by Polygon that parts of the gaming industry would begin to fall under new tariffs – yet, those projected percentages were set to be much lower than the new ideas.
AMD and Nvidia, who have already incurred a 10% tariff on graphics cards, are expected to be behind the software in the new PlayStation and Xbox consoles and could see their prices increased in a bid to recoup some costs.
Xbox is expected to announce their new console at E3 – however, the price could be set for a dramatic change.
Could these tariffs affect anyone else?
While this is only a proposal so far, it remains to be seen if the United States and China will get their trade dispute ironed out without affecting too many more parts of the entertainment industry.
If it does come to pass, then consumers can likely expect a price rise in many items that are imported, in some capacity, from China. However, it’s not known what, if any, impact this could have on consumers around the globe.