The decision by the US President Donald Trump administration to impose high tariffs on goods imported from China, Taiwan and other countries has far-reaching consequences for the entire global technology market. The PS5 and Xbox Series X gaming consoles will be no exception, with prices expected to rise significantly.
Image Source: Playstation.com
A comprehensive US tariff package comes into effect on April 5, providing for a basic duty of 10% on all imports. A duty of 20% is envisaged for goods from the European Union, and up to 34% for Chinese goods. In addition, 25% duties on cars and spare parts, including engines and batteries, came into effect on April 3. These measures are aimed at reducing the US trade deficit and strengthening domestic industry; experts warn of a likely increase in the cost of living and the threat of recession.
Gaming consoles are made primarily in China and Taiwan, meaning these products will become more expensive. According to experts, the prices of the PS5 and Xbox Series X could increase by 40%, or about $246. Sony foresaw this back in January and built up a stockpile of products, but it is unclear how long it will last. The price increase will not only be felt in the US: the increase in production costs will also affect final prices in other markets, including Europe, which will be passed on to consumers. Nintendo, which announced the Switch 2 console this week, said that games for it will cost up to €90, and it will soon become clear whether the current market situation was taken into account.
The tariffs threaten not only to raise prices, but also to change the structure of the market. The additional costs could make physical games less attractive, and publishers and console makers would begin to rely more on the digital copy format. For the consumer, this has both pros and cons: digital games appear on sale earlier, but they cannot be resold, and the binding to the platform is tighter.
The EU and China have already announced countermeasures. Europe intends to impose additional tariffs on American whiskey, motorcycles and boats; China has set mirror tariffs. The retaliatory tariffs threaten to further escalate the trade conflict and trigger an economic crisis that will affect all markets and sectors. Anyone planning to buy a new console this year, such as the Sony PS5 Pro, had better do it quickly and without thinking twice.