Gamers breathed a collective sigh of relief this week as the United States and China agreed to a new trade agreement that will stop the Xbox Series X and PlayStation 5 consoles from skyrocketing in price.
A Phase One agreement was signed by the two countries earlier this month. That means US President Donald Trump’s proposed 25% tax on Chinese-made electronics shipped to the US will not be happening. Those tariffs would have had a major impact on both the PlayStation 5 and Xbox One X consoles, had they actually gone through.
The Entertainment Software Association said that it feels encouraged by the agreement between the two countries. The Association is an organization that represents the interests of the US video game industry with lawmakers.
“We are encouraged that the Administration suspended the implementation of tariffs on video game consoles and controllers,” a spokesperson for the ESA said. “These tariffs would have significant implications for our industry, which boasts a trade surplus for the American economy. Tariffs will erode innovation, decrease job opportunities for American workers, and increase prices for consumers.”
The tariffs were opposed by a rare joint statement released by Sony, Microsoft, and Nintendo. In the statement, the three video game companies stated that the 25% increase in console prices would “likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season.”
Nintendo had been bracing for the tariff burden by moving their manufacturing operation out of China for its newest console, the Switch Lite. Sony had also warned fans that Trump’s proposed tariffs would cause a large increase to the price of the PlayStation 5. Microsoft echoed that statement, saying that the price of the Xbox Series X would be dependent on the situation between the US and China.
Unfortunately, the same can’t be said about tabletop games. Many raw materials produced in China that are needed for tabletop games are currently facing higher tariffs that the Association is hoping to see rolled back.
Both the PlayStation 5 and Xbox Series X are expected to launch this holiday season. Pricing has not yet been confirmed for the two consoles, however this move between the United States and China is considered to be a positive one that will benefit the success and availability of both gaming machines.
Rumors have been flying that the PlayStation 5 will be revealed by Sony sometime this month.
