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[Bullet Club]

Sony warns trade war could lead to PlayStation price hikes

The trade war could have a direct impact on gamers.

Sony has more than just the pre-PS5 sales slump to worry about in the near future. Company financial chief Hiroki Totoki has warned that US plans for expanded tariffs on Chinese products could force a price hike on PlayStation consoles. The tech giant is still exploring its options, Totoki said, but passing the costs to consumers was one of them. There hasn't been a firm decision as it's not clear whether or not widened tariffs will apply in the first place -- that depends on the Trump administration's negotiations with China.

The US raised tariffs on $200 billion in Chinese goods back in May, to 25 percent. A further tariff expansion would cover another $300 billion in products, including PlayStation systems.

This leaves Sony in a tough position. Consoles like the PS4 are typically sold at slim profit margins (or even at a loss early on) with the expectation of recouping more money through game and service sales. There might not be much room for Sony to absorb the tariff costs or move production to another country. At the same time, a price increase could lead to even weaker PS4 sales and leave Sony on shaky ground until the PS5's launch, which many expect in late 2020. Short of the US ending its tariff threats, there's no easy answer.

Source: Engadget

 

[mortal]

Hardware and software wise, it better be worth the money then.

 

[LOLCats]

Boo fucking hoo.

 

[Angry_Megalodon]

Sony warns trade war could lead to PlayStation price hikes

The trade war could have a direct impact on gamers.

Sony has more than just the pre-PS5 sales slump to worry about in the near future. Company financial chief Hiroki Totoki has warned that US plans for expanded tariffs on Chinese products could force a price hike on PlayStation consoles. The tech giant is still exploring its options, Totoki said, but passing the costs to consumers was one of them. There hasn't been a firm decision as it's not clear whether or not widened tariffs will apply in the first place -- that depends on the Trump administration's negotiations with China.

The US raised tariffs on $200 billion in Chinese goods back in May, to 25 percent. A further tariff expansion would cover another $300 billion in products, including PlayStation systems.

This leaves Sony in a tough position. Consoles like the PS4 are typically sold at slim profit margins (or even at a loss early on) with the expectation of recouping more money through game and service sales. There might not be much room for Sony to absorb the tariff costs or move production to another country. At the same time, a price increase could lead to even weaker PS4 sales and leave Sony on shaky ground until the PS5's launch, which many expect in late 2020. Short of the US ending its tariff threats, there's no easy answer.

Source: Engadget

100 Million PS4 sold but don't read too much into it

https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/19q1_sonypre.pdf

www.neogaf.com

100 Million PS4 sold

 

[MiyazakiHatesKojima]

I really hope not.

 

[Aintitcool]

Nintendo and Microsoft will suffer the same fate. Everyone(well apple) is trying to move their construction into india.

 

[Rayderism]

Of course they will jack up the prices. I mean, they are already warning us that they will do it. Sure, they are saying "they might", but don't kid yourself, they WILL.

 

[JordanN]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

Otherwise, China is going to keep getting rich, we lose all our jobs, and a Communist state will influence global policy. Hope yall like the great leap forward coming to your doorstep.

 

[JohnnyFootball]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

Otherwise, China is going to keep getting rich, we lose all our jobs, and a Communist state will influence global policy.

It's simple. China offers the ability to provide goods at a price much cheaper than what "made in the US" could provide. People want things as cheaply as possible. That's what it boils down to. The second those goods come back to the US is the second the price of those good skyrocket and then people stop buying.

At the end of the day, few people care about the human rights violations of China.

 

[Handy Fake]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

I suppose a global market has its ups and its pitfalls. Cheaper labour in China I suppose. I do wonder if the trade agreement between the EU and Japan will bring more manufacturing back to Japan though since the EU is probably their biggest market and not having tariffs to worry about will probably be a major boon.

As an aside, Trump's tariffs on imports from China are to blame for this, there's no real getting away from it.

Aren't XBox Ones made in China too? I seem to recall reading an article about them opening manufacturing there. If that's the case then I can see XBox being hit more with these tariffs considering their US market.*

*I'm possibly wrong on this so don't shout at me.

It's simple. China offers the ability to provide goods at a price much cheaper than what "made in the US" could provide. People want things as cheaply as possible. That's what it boils down to. The second those goods come back to the US is the second the price of those good skyrocket and then people stop buying.

At the end of the day, few people care about the human rights violations of China.

Ah the joys of Capitalism.

 

[Mattyp]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

This, the companies should look at moving manufacture to Mexico or other closer ally countries.

I still can’t believe that the production on items like the iPhone isn’t that automated now it isn’t cheaper to have a factory of robots in Texas. How much human interaction do we still need when piecing them together? I can’t believe we don’t have the tech already to do complete assembly without humans standing in the production line.

My only thought is Foxconn know their only valuable when they need a presence.

In less then 20 years time we’ll have driverless trucks delivering the pieces, robots unloading while the trucks skip around to another dock and getting re-loaded with the finished product. The faster we move to this the better.

 

[Handy Fake]

This, the companies should look at moving manufacture to Mexico or other closer ally countries.

I still can’t believe that the production on items like the iPhone isn’t that automated now it isn’t cheaper to have a factory of robots in Texas. How much human interaction do we still need when piecing them together? I can’t believe we don’t have the tech already to do complete assembly without humans standing in the production line.

My only thought is Foxconn know their only valuable when they need a presence.

In less then 20 years time we’ll have driverless trucks delivering the pieces, robots unloading while the trucks skip around to another dock and getting re-loaded with the finished product. The faster we move to this the better.

Do you want Skynet? Because this is how you get Skynet.

 

[JordanN]

It's simple. China offers the ability to provide goods at a price much cheaper than what "made in the US" could provide. People want things as cheaply as possible. That's what it boils down to. The second those goods come back to the US is the second the price of those good skyrocket and then people stop buying.

Yes, but why did we have to give all our products to a Communist country?

Again, if the Soviet Union made your car, or if Nazi Germany made your TV, would you still buy it? Yet why didn't the same logic apply to Communist China?

Shit, the world already saw back in 1989 that China obviously doesn't care about human rights, yet we went ahead and gave them our rights to make all our stuff.

 

[DunDunDunpachi]

Manufacturing will simply shift elsewhere. Apple, Nintendo, Microsoft, and even Sony are already doing so.

This is known as "being opportunistic", because if they reveal the system and people boo the price, Sony can shrug and say "well we told you it would happen because tradewars", when in reality they've had more than enough time to shift production elsewhere without affecting the cost in any significant way.

 

[Mattyp]

Do you want Skynet? Because this is how you get Skynet.

I for one welcome our overlord robots.

 

[Handy Fake]

Yes, but why did we have to give all our products to a Communist country?

Again, if the Soviet Union made your car, or Nazi Germany made your TV, would you still buy it? Yet why didn't the same logic apply to Communist China?

Shit, the world already saw back in 1989 that China obviously doesn't care about human rights, yet we went ahead and gave them our rights to make all our stuff.

Not sure why "Communist" is an issue here mind. Horses for courses with political systems, it's the Governments that deserve your ire.

 

[JordanN]

Not sure why "Communist" is an issue here mind. Horses for courses with political systems, it's the Governments that deserve your ire.

Communist governments have always been some of the worst on earth.

It's also apart of some schools of Marxism to force communism on the whole world.

World revolution - Wikipedia

en.wikipedia.org

We're basically supporting a country who would be happy to enslave us.

 

[JohnnyFootball]

We're basically supporting a country who would be happy to enslave us.

Most countries probably feel this way.

 

[Handy Fake]

Communist governments have always been some of the worst on earth.

It's also apart of some schools of Marxism to force communism on the whole world.

World revolution - Wikipedia

en.wikipedia.org

We're basically supporting a country who would be happy to enslave us.

... Well, opinions differ on the matter but this isn't really the forum for it.

Most countries probably feel this way.

Well exactly.

 

[MeatSafeMurderer]

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win?

Back in the day they used to manufacture launch models in Japan. Lately they don't even do that. They'll jack up the cost to the consumer to cover it...but you know what else? They'll use the excuse to jack it up across the board, and higher than they need to. They love this, it's a golden opportunity for them.

 

[JordanN]

Most countries probably feel this way.

How many of them have the status and wealth to do so?
Besides China, the most powerful country on earth is the U.S, who for all intents and purposes, supports democracy and freedom.

I can't see anyone coming close, that supports slavery and is rich. Maybe Russia, but historically speaking, they couldn't even defeat Japan.

Russo-Japanese War - Wikipedia

en.wikipedia.org

 

[Handy Fake]

How many of them have the status and wealth to do so?
Besides China, the most powerful country on earth is the U.S, who for all intents and purposes, supports democracy and freedom.

I can't see anyone coming close, that supports slavery and is rich.

Saudi Arabia.
But, I'll just give you a quick example of what JohnnyFootball may mean.

I live in the UK and this whole Brexit malarkey is putting the shits right up me. If we head out on a No Deal, our first stop (going by the incumbent buffoons Boris Johnson and Nigel Farage) will be the US.
And the US Ambassador has stated that our National Health Service will be straight on the negotiating table.

And that terrifies the life out of me. So in that sense, I see the US as vultures circling to pick apart our wonderful (and Socialist) healthcare system.

But again, it's horses for courses.

 

[JordanN]

Saudi Arabia.
But, I'll just give you a quick example of what JohnnyFootball may mean.

I live in the UK and this whole Brexit malarkey is putting the shits right up me. If we head out on a No Deal, our first stop (going by the incumbent buffoons Boris Johnson and Nigel Farage) will be the US.
And the US Ambassador has stated that our National Health Service will be straight on the negotiating table.

And that terrifies the life out of me. So in that sense, I see the US as vultures circling to pick apart our wonderful (and Socialist) healthcare system.

But again, it's horses for courses.

Saudi Arabia is indeed another one, however, I think there are two things stopping them from world domination.
1. Oil. Once that runs out or if we do find an alternate source of energy, they'll start panicking.
2. Too many enemies. Being in the Middle East, Shia and Sunnis don't like each other. They would have to fight their way out, and then fight Israel, before they can start dictating to Europe or the rest of Asia.

I would be more scared of Saudi's using their money to recruit terrorists and sending them across the world, but I don't think they have the capacity to actually rule everyone.

Meanwhile, China is actually starting to expand in Africa and start building military bases.

 

[Patrick S.]

Globalization was a fucking mistake.

 

[Handy Fake]

Saudi Arabia is indeed another one, however, I think there are two things stopping them from world domination.
1. Oil. Once that runs out or if we do find an alternate source of energy, they'll start panicking.
2. Too many enemies. Being in the Middle East, Shia and Sunnis don't like each other. They would have to fight their way out, and then fight Israel, before they can start dictating to Europe or the rest of Asia.

I would be more scared of Saudi's using their money to recruit terrorists and sending them across the world, but I don't think they have the capacity to actually rule everyone.

Aye, there is truth in that.
I just think that there's too much fear of other cultures, you know? China relies on the capitalist market as much as anyone.

The issue for me is those at the top using "trade wars" and tariffs for their own ends. We're being taken for mugs by the upper echelons.
As I said, being in the UK and watching this Brexit fiasco unfold has only reinforced my belief on this.

Little brainfart edit here, I think the main threat to world peace appears to be market uncertainty. What a sad time to be alive.

 

[danielberg]

Sony warns trade war could lead to PlayStation price hikes

Well if its played like that... then I have to warn sony that price hikes could lead to less sales... damn now what sony? Ball is again on your side.

 

[Barnabot]

I think it sounds more like an excuse than an empty gesture. Sony just wants to raise the standard 400 bucks bar a little. Maybe to 600 bucks, just like the PS3? Maybe more? Some people buy a $1000 smartphone nowadays.

 

[Handy Fake]

I think it sounds more like an excuse than an empty gesture. Sony just wants to raise the standard 400 bucks bar a little. Maybe to 600 bucks, just like the PS3? Maybe more? Some people buy a $1000 smartphone nowadays.

Tariffs are paid for by the consumer. So if, say, the PS4 is $400, then the consumer would have to pay $480.
Now Sony wouldn't want that, they'd want the price to be $400 as it is a good price point for sales. So they'd have to reduce the cost of the PS4 for it to be $400 after tariffs.
And if they work on slim margins that's something they simply couldn't afford to do, you know?

 

[Sakura]

Didn't Playstations used to be made in Japan? But now they have no choice but to make them in China and deal with the tariffs?
I'm sure they'll figure something out. Having an expensive PS5 that nobody buys would cost them more money.

 

[Gamernyc78]

Sony warns trade war could lead to PlayStation price hikes

The trade war could have a direct impact on gamers.

Sony has more than just the pre-PS5 sales slump to worry about in the near future. Company financial chief Hiroki Totoki has warned that US plans for expanded tariffs on Chinese products could force a price hike on PlayStation consoles. The tech giant is still exploring its options, Totoki said, but passing the costs to consumers was one of them. There hasn't been a firm decision as it's not clear whether or not widened tariffs will apply in the first place -- that depends on the Trump administration's negotiations with China.

The US raised tariffs on $200 billion in Chinese goods back in May, to 25 percent. A further tariff expansion would cover another $300 billion in products, including PlayStation systems.

This leaves Sony in a tough position. Consoles like the PS4 are typically sold at slim profit margins (or even at a loss early on) with the expectation of recouping more money through game and service sales. There might not be much room for Sony to absorb the tariff costs or move production to another country. At the same time, a price increase could lead to even weaker PS4 sales and leave Sony on shaky ground until the PS5's launch, which many expect in late 2020. Short of the US ending its tariff threats, there's no easy answer.

Source: Engadget

It's reality but we don't give a & uck! You better eat hardware loss and not sell over 500 bcus youll be committing seppuku if you do. You'll more than make up for it on software sales side.

 

[Fushitsusha]

Hardware and software wise, it better be worth the money then.

What?

 

[Luffytubby]

Didn't Playstations used to be made in Japan? But now they have no choice but to make them in China and deal with the tariffs?
I'm sure they'll figure something out. Having an expensive PS5 that nobody buys would cost them more money.

Companies like Foxconn already have lots of other factories elsewhere. Sometimes they make it in Taiwan because its not part of the "mainland" to get away from the tarrifs. Or chinese companies just have it made in India, Thailand or Vietnam. As China gets richer, wages increases, the production was bound to move elsewhere.

 

[xGreir]

I don't think isolating China is a good idea, even with its suicidal politics, the harm is going directly to the poblation, and those filthy communist are still going to stay wealthy.

It's a complicated situation, we have to acknowledge that we can manufacture that cheap bcs we are taking advantage of the destructive communism, but at the same time, it's their own responsability, and we can't just forbide them.

For fucks sakes, why is Socialism still a thing?? It can't do any good...

 

[DanielsM]

I would imagine Sony should start thinking of moving production/assembly.

 

[mortal]

What?

?

 

[Tygeezy]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

Otherwise, China is going to keep getting rich, we lose all our jobs, and a Communist state will influence global policy. Hope yall like the great leap forward coming to your doorstep.

It has way more to do with their IP theft. They are communist in name only. They have their own stock market and obviously private businesses which doesn't exist in communism.

 

[Barnabot]

Tariffs are paid for by the consumer. So if, say, the PS4 is $400, then the consumer would have to pay $480.
Now Sony wouldn't want that, they'd want the price to be $400 as it is a good price point for sales. So they'd have to reduce the cost of the PS4 for it to be $400 after tariffs.
And if they work on slim margins that's something they simply couldn't afford to do, you know?

We only have to assume they have good intentions with that warning. Well it's up to Sony to put the next console and its pricing on the table so we can decide if they were reasonable or not with that pricing. But the smell of a possible extortion ... smartphone companies have done that before. Can't blame Sony though for trying to pull that stunt just because they think they can and others already got away with that.

 

[Fushitsusha]

?

"Hardware wise"

Are you saying that the PS5 should have better specs to be worth the extra costs that the tariff would add? Because that's how it reads and it makes no sense.

 

[Handy Fake]

We only have to assume they have good intentions with that warning. Well it's up to Sony to put the next console and its pricing on the table so we can decide if they were reasonable or not with that pricing. But the smell of a possible extortion ... smartphone companies have done that before. Can't blame Sony though for trying to pull that stunt just because they think they can and others already got away with that.

It's not really a stunt though, is it? It's the tariffs imposed. Unless the US relents on them then there's very little choice.

 

[Slings and Arrows]

Sounds like this is Sony greasing the market up for an expensive PS5.

If Microsoft start talking about high costs, tarrifs, or market uncertainty, then you can bet pounds to pennies that the next-gen consoles will cost a fair few quid.

 

[Barnabot]

It's not really a stunt though, is it? It's the tariffs imposed. Unless the US relents on them then there's very littel choice.

Only time will tell. We need to see what they offer first. So far we only know they want to increase the MSRP.

 

[mortal]

"Hardware wise"

Are you saying that the PS5 should have better specs to be worth the extra costs that the tariff would add? Because that's how it reads and it makes no sense.

Huh? I just mean It better be well worth the money both for the hardware and the software, whatever the final retail price will be. I think you're reading too much into my comment lol

 

[Birdo]

Send two Jedi to negotiate.

 

[UltimaKilo]

Sony needs to STFU and adapt the way Nintendo, Microsoft and Apple are. Foxconn is growing their facilities in SE Asian and India (even before the trade war, just because of rising wages in China) and yet Sony has still not cut the price on the PS4 this late in the game to stimulate sales.

100 million consoles sold, go cry me a river, FFS.

 

[Space Runaway]

Cynic in me feels we were gonna get this price hike anyway. =P

 

[Insane Metal]

Welp. This is the excuse they're giving for the 14TF $599 machine

You happy now SonGoku ?

 

[petran79]

You know something?

People will want to blame Trump for this but how come no has ever asked: why are we supporting Communist China?

Imagine if all our TV's, Cars, Clothes etc had been made in the Soviet Union during the Cold War. There would be outrage. Yet after all these years, why did we give Communist China a pass?

Communist China is just as terrible when it comes to gross human rights violations yet we continue to send all our jobs and products over there.

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

Otherwise, China is going to keep getting rich, we lose all our jobs, and a Communist state will influence global policy. Hope yall like the great leap forward coming to your doorstep.

Even during the Cold War many countries chose to import weapons from both America, Soviet Union and Europe, make wars and send the collected data to the manufacturers.



We even had cars and other products from neighboring European communist countries and many people went to study on their universities.

Bless Gorbatschev

 

[GamingKaiju]

They're just prepping us for a $699 console. God knows what that will be GBP with the currency undergoing such volatility.

I will defineitly be sitting next gen out for a few years or until I can't run modern games on my PC.

 

[vpance]

Welp. This is the excuse they're giving for the 14TF $599 machine

You happy now SonGoku ?

Or the 8TF $499 nightmare

 

[Vawn]

Rather than support a totalitarian dictatorship, why doesn't Sony make Playstations in Japan? If they still care about their heritage, wouldn't it be a win? Or maybe moving their headquarters to California probably messed up their brains and all they care about is making money.

I imagine people in Japan expect to earn honest wages. Those prices get passed on to us consumers. We can't have that now.