Gamers feel impact of trade war as Sony and Nintendo up prices
Little by little, we are beginning to feel the impact of the trade war. For example, tech giant Sony has raised the price tag of the PlayStation 5 Digital Edition by €50 to €500 in European countries. Also in other parts of the world gamers have to put more money on the table if they want to buy that console.
The recommended retail price for a PlayStation 5 Digital Edition in the European Union has risen to €500. Sony has also raised the price in the United Kingdom, Australia and New Zealand. Americans are currently escaping a price increase.
According to the tech giant, such an intervention is necessary because of the economic uncertainty associated with the trade war launched by US President Donald Trump.
Trump announced earlier this month that American consumers and businesses would have to pay a 24% import tax on items they import from Japan. He finally pushed the pause button, at least for countries willing to negotiate with the US. For 90 days, the import tax will be limited to 10%. Trump wants to make deals with US trading partners during that period.
However, Japan’s prime minister, Shigeru Ishiba, said today that his country did not intend to make major concessions in negotiations with the U.S. and that there is no rush to buy into an agreement. Talks between the two governments will take place this week.
The US government already let it be known last weekend that it will temporarily exclude import duties on certain electronics products, including smartphones and computers, from the recent tariff increases. “That should give tech companies a chance to move production to the US,” the White House announced Saturday. In any case, the temporary exemption does not apply to game consoles.
Trump did add Sunday on his own social media platform Truth Social that “no one is getting off scot-free.” According to him, tech products simply move to another category and in the meantime remain subject to previously created 20% tariffs.
Why are American consumers (currently) spared a price increase? “The US is the largest market for video game consoles and rather than simply raising prices there, it is possible that PlayStation is raising prices globally in an effort to protect the US market as much as possible,” Christopher Dring, a journalist who follows the gaming industry closely, clarified in an interview with the BBC.
Nintendo Switch 2 delays
Sony is not the only gaming giant affected by the trade war. Nintendo has delayed pre-orders for its latest game console Switch 2 in both the US and Canada.
Like Sony, Nintendo is citing changing market conditions. The release date, however, remains unchanged. The console will be on US store shelves from 5 June.
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