Sony Considering PlayStation Price Hike Over Proposed US-China Tariffsby Tristan Oliver July 31, 2019
A Wall Street Journal report claims that, on the cusp of a new generation console launch expected next year, Sony may raise the price of the PlayStation in the United States if President Donald Trump’s trade war with China escalates.
Mr. Trump has proposed more than $300 billion in new tariffs against goods from China, as well as hiking the current rate to 25 percent from the current 10 percent, accounting for another $200 billion. A ton of tech from Apple devices to video game consoles would be impacted if they go into effect, and most PlayStation production occurs in China.
Sony’s financial head Hiroki Totoki said the company is considering all options if the tariffs are enacted, but one of those options is to raise prices to offset tariff costs. No final decision has been made. Even so, Totoki told the Wall Street Journal the new PlayStation, expected to release next year, could be more expensive even without considering new tariffs.
“We believe, and therefore have told the U.S. government, that higher tariffs would ultimately damage the U.S. economy,” Totoki said.
In its quarterly earnings, Sony said profits fell by a third year-over-year.