PlayStation 5 is temporarily protected from US duties: Sony stocks up on consoles
Sony has taken steps to temporarily protect the PlayStation 5 from the increased tariffs imposed by the administration of US President Donald Trump. The company has doubled its supply chain and stockpiled consoles to create a buffer against possible changes.
Here's What We Know
While these actions give Sony some time to adapt, they are not a long-term solution. The majority of PlayStation 5 consoles are manufactured in China, and they can be subject to duties of up to 54%. Moving production to Japan would reduce this to 24%, but could still lead to higher prices for US consumers.
Nico Partners analyst Daniel Ahmad notes that Sony will have to assess the impact of the duties on profits and decide how much to raise prices for equipment. He adds that due to inventory, production in Japan, and the expected price of the PS5 Pro at $700, even with the increase in duties, the price increase may not be as significant for consumers (up to $100).
Nintendo has already announced a delay in pre-orders for the Switch 2 in the US, assessing the potential impact of the duties on the new console. Although the release date remains unchanged at 5 June, there is speculation about a possible price increase before the launch.
Source: @ZhugeEX
