Video game console prices may increase due to proposed 25% tax rate

Many have hoped that the US-China trade war would never affect the video games industry but that may no longer be the case. New tariffs proposed by United States President Donald Trump may raise the prices on a number of imported goods from China. As a result, video game console prices may increase.

A hearing for the proposed tariffs is set on 17^th June 2019, when we will know if gaming-related products will be affected. If approved, it will raise the tax rate of affected goods from 10% to 25%. US gamers may see a significant increase in the price of not just game consoles, but also peripherals like controllers or PC components.

Sony’s next-gen console (tentatively named PlayStation 5) could also see pricings affected. Besides Sony’s consoles, Microsoft and Nintendo also have their consoles manufactured in China. Since game consoles are typically sold at a loss, there’s a real concern that prices will spike up drastically or manufacturers will find new ways to recoup the additional losses.

A full list of items listed under the proposed tariffs can be found here.

You can refer to the below for the item categories that are relevant to video games:

8526.92.10 …….. Radio remote control apparatus for video game consoles.
8543.70.87 …….. Electrical machines w/translation/dictionary; flatpanel displays except for heading 8528 (except 8528.51/61); infrared video game controller.
9504.30.00 …….. Coin- or token-operated games for arcade, table or parlor (o/than bowling alley equipment) nesoi and parts and accessories thereof.
9504.50.00 …….. Video game consoles and machines, other than those of heading 9504.30.
9504.90.40 …….. Game machines (o/than coin- or token-operated) and parts and accessories thereof.

Right now, we’re unsure of how big an impact this will be. But we’ll be looking out for any more news on this situation so do keep an eye out for updates from us!

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