Microsoft and Sony are expected to make massive changes that could substantially protect the release elements and price of the Xbox Scarlett and the PlayStation 5. Gaming console makers are recently in a quagmire which could potentially affect the price of their current consoles. The present situation is linked to the ongoing tariff and trade talks between the US and China
This includes the concern on the trade representative of the US if they are going to apply a new set of tariffs on several items, which includes gaming consoles. In the event that this will be applied, Nintendo Switch, Xbox One, and PlayStation 4 could implement a price increase. This is clearly something that these companies would not want to happen.
Any changes on the trade talks between these countries could definitely affect the release plans and release prices of PlayStation 5 and Xbox Scarlett. Both next-generation gaming consoles are anticipated to arrive in 2020. These gaming console giants have already set their arguments contradicting the new tariffs, but it also seems that they are also prepared to make significant changes.
In a report released by Nikkei Asian Review, these companies are already considering changing their production setups, particularly in China. According to the report, tech titans like Nintendo, Amazon, Google, Sony, and Microsoft are now considering relocating some of the smart speaker and gaming console manufacturing outside the country. As the report was posted online, Nintendo earlier confirmed that they have plans of changing their production setup.
As for Sony and Microsoft, both companies have not yet confirmed or shared their plans related to production and manufacturing relocation. But, last January, Sony mentioned that they would consider doing it in the event that the situation calls for it. So far, it is not yet clear if these planned changes could have an effect on the supply chains of the concerned companies.
But, in a joint statement released by Sony, Nintendo, and Microsoft, they clearly stated the impact of the newly proposed tariffs on the industry. According to the statement, a price increase of around 25 percent will most likely make any gaming console out of reach for most Americans who are expected to be active in the console market during the holiday season. The statement also noted that purchases that go forward despite the tariffs, consumers are paying $840 million more than they would otherwise do.
The statistics, according to the joint letter, is based on recent research prepared by the independent economic group Trade Partnership for the Consumer Technology Association.
