PS5 Price Increase Due to Trump’s Tariffs

It seems no Industry is safe from the economic fallout of the Trump Tariff plan. Previously its peer Ninento was forced to raise the pre order prices of its product the “Switch 2” due to the 24% tariff imposed on Japanese goods imported to America. Sony announced it had to take the ‘tough decision’ starting from Monday. The fact that the price increases will affect sales in Europe and Australia show the global impact of Americas new trading strategy. Is the PS5 price increase a sign of worse things to come for the gaming industry?

What are the Increases? 

The Japanese game developer announced it would raise the price of the PS5 digital edition to £429.99 in the UK and €499.99 in Europe, effective from Monday. However, the price of the standard PS5, which includes a disk drive, will remain unchanged.

The company attributed the price increase to “a challenging economic environment” caused by high inflation and fluctuating exchange rates. This adjustment will affect markets across Europe, the Middle East, Africa, and Oceania

In Australia, the price of the standard PS5 will rise to A$829.95, while the digital edition will increase to A$749.95. Meanwhile, in New Zealand, the standard console will cost NZ$949.95, and the digital edition will rise to NZ$859.95.

The Japanese stock exchange was up following president Trump’s announcement that electronics such as phones, computers and games consoles would be exempt from tariffs. However uncertainty still runs rampant as the President’s policies seem to be changing by the day. It could be possible that the PS5 price increase is a sign of greater trouble for the gaming industry.

Sources

The Guardian – Sony hikes PlayStation 5 price by 25% as Trump tariffs bite

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