Compared with Xbox, sales of the PS5 family series have been very hot. However, the tariff war launched by the new US administration under Trump may deeply affect the sales of game consoles in the future. Now, in an effort to combat these tariffs, Sony has unveiled new strategies, and the good news is they won't hurt gamers.
At the company’s Q3 financial report meeting for fiscal year 2024, Sony believed that the potential impact of import tariffs was relatively small, at least for now. The company said it would "respond flexibly and quickly to changing circumstances" to avoid PS5 price increases.
Specific measures include:
Establishing alternate supply chains: Sony is replicating supply chains, possibly by setting up alternative manufacturing or sourcing channels, to reduce reliance on a single supply chain and thereby circumvent the impact of tariffs.
Stock up on inventory in the U.S. in advance: By stocking more consoles in the U.S., Sony can reduce future increases in import costs due to new tariffs.
These measures are intended to mitigate the knock-on effects of tariffs and ensure consumers do not bear additional price increases.
Previously, a study by the Consumer Technology Association pointed out that Trump's tariffs could increase the price of game consoles by 40%. Taking the PS5 Pro as an example, its price may soar from current levels to $980. This increase will significantly increase the purchasing burden on consumers.
Given the widespread perception that the PS5 and its Pro models are overpriced, further price increases could damage Sony's brand reputation. In addition, it is worth mentioning that compared with the sales performance of PS4 Pro in a similar period after its release, PS5 Pro sales have lagged significantly behind. If tariffs cause prices to rise further, Sony may face greater market pressure.