Looking ahead, Sony’s strategic planning should provide some protection for the PS5 against President Donald Trump’s tariffs; however, this safeguard is expected to be temporary.
To safeguard against potential actions by the U.S. government, the manufacturer expanded its supply chains and accumulated extra hardware as a precautionary measure, providing itself with additional resources for protection.
As a dedicated fan, I can tell you that this tactic offers a temporary reprieve for the platform owner, allowing them to exhaust their existing stock of consoles and accessories before they’re impacted by tariffs. However, it’s important to note that this situation isn’t permanent. If nothing changes in the future, once they’ve sold through their current inventory, they might be compelled to increase prices.
Since most PlayStation 5 consoles are produced in China, they’re hit with a 54% tariff. However, manufacturing the consoles exclusively in Japan could reduce those tariffs to 24%. Yet, this move might lead to increased hardware costs for American consumers.
According to Nico Partners analyst Daniel Ahmad, the company must assess whether these tariffs affect their existing profit margins and if they have to raise the price of their hardware for customers. Additionally, there might be an influence on the cost of accessories and games, depending on how Sony chooses to transfer these costs.
The positive aspect is that the initial production, Japanese manufacturing, PS5 being in the middle to late phase of its generation (currently profitable per unit), and the anticipated price of PS5 Pro at around $700 due to potential tariff implications, suggests that any price increase for this product may not be as substantial compared to new technology items.
As a gamer, I’ve got to admit, it’s a nerve-wracking time for game manufacturers these days. But here’s the thing, Sony seems to be weathering the storm a bit better than some of its competitors. And you know what? I think it’s because they’re just plain smart about their moves. They’ve got a solid strategy going on, and it shows.
This week, Nintendo shared that they’re delaying pre-orders for the Switch 2 in the U.S., as they assess how tariffs might influence their upcoming console. Although the launch date of May 5th remains unchanged, there are rumors suggesting that its price may increase before it hits the market.
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2025-04-06 14:36