It appears that Sony PlayStation and Microsoft will need to factor in another crucial pricing issue when it comes to the release of the PS5 and Xbox Two.
While neither machine has been given a solid release date, we know that they are both real and likely being launched in 2020.
Sony has been slowly sharing their plans for the PS5, including an extensive list of features that will be included.
Meanwhile, Microsoft is expected to confirm big details about their next Xbox console during E3 2019.
Apart from the release date, the other crucial news not shared by either company is how much their new consoles will cost.
This is a huge factor in deciding which gaming machine will come out on top, having been key to the success of the PS4.
But something happened earlier this month that may affect the price of the PS5 and Xbox Two.
The Office of the United States Trade Representative has published new details on what new goods are being considered for new tariffs.
These charges could be as high as 25% on new goods that are imported from China, a huge manufacturing base for many companies.
There’s plenty of items listed in the new document, including “video game consoles and machines” which would no doubt include the PS5 and Xbox Two.
At this point, we can’t be sure if these new tariffs will be imposed on console but if they are, a 25% change would see a definite price change.
Analysts are already predicting that these new gaming machines may be sold at a loss, making new tariff even more important.
And this won’t just be a factor for future console but could start impacting the PS4, Xbox One and Nintendo Switch too.
According to Game Rant, the hearing for these new set of tariffs is happening next month and could be brought into effect in the same month.
The schedule currently lists June 17 as the start of the hearing, meaning the end of the month could see some major changes for hardware makers.
For now, these kinds of changes are only being proposed and have yet to be put in place. Companies and industry analysts have already commented on the introduction of additional tariffs on goods.
Former Microsoft COO Bob Herbold shared his thoughts on the general tariff situation earlier in May, telling FOX Business Monday:
“From someone who has spent their entire career in industry, you try to work these things out quickly before they fester and what is happening in the U.S. is that this is really festering.
“Both sides don’t want to lose face, and consequently, you’re seeing the classic behaviour of two major players here who won’t give in. What’s a shame is that they can’t get together privately and work this thing out.
“China is holding up their R&D and technology strength, especially in the science and technology areas, very robustly. So they are a major threat to us right now in terms of these areas,” he said.
Meanwhile, Sony Senior Executive Vice President Ichiro Takagi, revealed back in January that the company may need to move production out of China.
“of course we will consider manufacturing in other countries and regions,” he said during CES.
It is unclear just how much this would affect the production of the PS5 or future Microsoft consoles.