The latest decisions by the US government under President Donald Trump to introduce high import tariffs on goods from China, Taiwan and other countries have far-reaching consequences for the global technology market. This also affects games consoles such as the PS5 and Xbox Series X, whose prices are expected to rise significantly.
Background to the customs measures
President Trump has announced a comprehensive customs package that will take effect from April 5, 2025 comes into force. This provides for a basic tariff of ten percent on all US imports. Tariffs of 20 percent will apply to the European Union, while China will be subject to tariffs of as much as 34 percent. planned are. In addition, car tariffs of 25 percent will come into force on April 3, which will also be extended to vehicle parts such as engines and batteries.
These measures are aimed at reducing the US trade deficit and strengthening domestic industry. However, critics warn of negative consequences such as a higher cost of living and a possible recession.
Effects on the prices of PS5 and Xbox Series X
As the production of games consoles largely takes place in China, Taiwan and other countries, the increased import duties lead directly to higher import costs for these products. According to analyses, prices for consoles such as the PS5 and Xbox Series X could rise by almost 40 percent which corresponds to an increase of around 246 US dollars. Sony already announced in January prepared for such a scenario and stocked up on hardware. However, it is unclear how long these will last.
These price increases will not only be felt in the USA. Global supply chains and production costs will also affect end prices in other markets, including Europe. Higher production costs could be passed on to consumers by manufacturers, which could lead to an increase in prices for consoles and accessories in Germany and other European countries.
Also of interest in this context are the game prices recently announced by Nintendo for the Switch 2which will cost up to 90 euros. It will soon become clear whether the current market situation has already been taken into account or whether the production costs are actually that high.
Shift towards digital games
In addition to direct price increases, the tariffs could also accelerate structural changes in the games market. Analysts such as Rhys Elliott from MIDiA Research point out that the additional costs could make physical games less attractive. Publishers and console manufacturers could increasingly rely on digital distribution to avoid customs duties and production costs.
This development would further strengthen the trend towards digital games, which has both advantages and disadvantages for consumers. While digital games are more convenient and often available more quickly, the possibility of reselling is eliminated and there is a stronger link to the respective platforms.
Reactions of the European Union
The European Union has already announced countermeasures. In response to the US tariffs, the EU is planning to impose extra tariffs on American products such as whiskey, motorcycles and boats. These retaliatory tariffs could further escalate the trade conflict and create additional economic uncertainty, which would ultimately have an impact on all markets and sectors.
The import tariffs introduced by the US government therefore have a far-reaching impact on the global market, including games consoles. Consumers in Europe, including Germany, are likely to face higher prices for PS5 and Xbox Series X as an indirect consequence. In addition, the trend towards digital games could continue to gain momentum, which could further limit the availability of physical games. It remains to be seen how manufacturers, retailers and consumers will react to these changes and what the long-term consequences will be for the games market.
Anyone planning to make a major purchase this year, such as the PS5 Pro, should do so promptly and not think twice.
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