Trade Agreement Removes Fear of Next-Gen Console Price Hike
Mike Sanders / 2 years ago
When Donald Trump announced plans to place a 25% import tax on products produced in China, one of the biggest concerns from the gaming community was how this would affect the upcoming prices of the next-generation console releases.
With all three major companies writing to the US government urging a deal to be struck, Sony said that any extra cost through the tax would likely have to be passed onto the consumer.
There is, however, good news! Following a new trade deal being agreed between America and China, it seems that consoles will not be subject to any ‘import tax’ price hike! In other words, they’re going to sell in America for the intended price!
Trade Agreement Removes Next-Gen Consoles Price Hike Fears!
In a report via TechSpot, the “Phase One” agreement which has been reached will effectively see the proposed 25% import tax proposals halted. At least indefinitely, but hopefully permanently.
As such, with the tax no longer coming into effect, it means that the major console manufacturers (who largely produce their systems in China) will not have to add the cost to their overall system prices. A factor that could’ve turned an already notable expense into an outright unaffordable one!
What Do We Think?
We suspected that, sooner or later, a deal was always going to be made. Just how bad would this have been if the agreement hadn’t been reached though? Well, assuming that a PS5 was going to retail for $500 (which it may well do), the increase would’ve seen that price bumped up to at least $625.00. Quite the notable jump for what would purely be a tax expense!
So, the good news is that you can all breathe a sigh of relief. Common sense has prevailed and now all we need to hear is how much they are going to cost!
What do you think? Are you pleased that a deal has been made? Which console are you planning on getting? – Let us know in the comments!