China trade tariffs won't directly raise PS5, Xbox Series X prices

U.S. and China sign new trade pact that cancels proposed electronics tariff that could've raised next-gen console prices.

@DeekeTweak

Published Jan 28, 2020 10:20 AM CST
Updated Nov 3, 2020 12:45 PM CST

22 minutes & 35 seconds read time

The United States and China have signed a new trade pact to dampen 2019's international tariffs while also eliminating the extra 25% tax on video game electronics.

China trade tariffs won't directly raise PS5, Xbox Series X prices 6

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A now-cancelled tariff could've substantially raised the price of next-gen consoles like the PlayStation 5 and Xbox Series X, both of which may already be expensive enthusiast products priced at $499 each. The new regulations peel back original plans for extra import taxes on vital gaming components.

The previous regulations, which called for a hefty 25% ad valorum tax tacked onto select goods like video game hardware components imported from China, would've disrupted the critical supply chains of major console-makers like Sony, Microsoft, and Nintendo. The Big Three banded together and warned the U.S. government that the tariffs could force costs to rise and affect the economy (higher prices could mean lower sales). Sony in particular delivered two warnings.

As a result, all three companies made express plans to move some of their console production and manufacturing outside of China to avoid the tariffs. Sources say the companies were eyeing Taiwanese facilities.

We're unsure how much Sony, Microsoft, and Nintendo each spent on these moves, and whether or not the transition could have a material impact on console sale prices.

Typically Microsoft and Sony sell their systems at a loss and make up for it with software and services. Nintendo, however, intends to sell every Switch console at a profit. So it's possible that the Switch, or even the rumored Switch Pro possibly coming in 2020, could be affected price-wise.

Given the PlayStation 5's and Xbox Series X's higher-end specs (customized Zen 2 CPU and Navi GPU, new high-speed PCIe 4.0 SSD, 16GB of unified memory, etc.) the systems could end up being pricey to manufacture.

Both systems are due out by Holiday 2020. Pricing nor specifics on hardware specifications have been revealed. Check below for more info, including confirmed and speculated specs.

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Xbox Series X confirmed details (Formerly Project Scarlett):

8-core, 16-thread Zen 2 CPU
Navi GPU on RDNA architecture
Highly customized 7nm SoC from AMD
GDDR6 memory
2x Xbox One X's 6TFLOPs of GPU perf
4x CPU power of Xbox One generation
Can deliver up to 40x more performance than Xbox One in specific use cases
Adaptive sync supported
Super-fast SSD that can be used as VRAM
Supports 8K resolution (likely media playback)
120FPS gaming
Variable refresh rate (adaptive sync/FreeSync)
Variable Rate Shading
Raytracing confirmed with dedicated raytracing cores
Backward compatible with thousands of Xbox, Xbox 360, and Xbox One games
New controller with a dedicated share button
Compatible with Xbox One accessories

Lockhart (Unconfirmed lower-end Xbox Series hardware)

1440p 60FPS
No disc drive
Super-fast SSD that can be used as VRAM
7nm AMD SoC w/ scaled-down 8-core, 16 thread Zen 2 CPU at 3.5GHZ and Navi GPU
Lower GDDR6 memory pool (Possibly 12GB)
~6-8 TFLOPs of power?
Aims to rival PS4 Pro/Replace Xbox One S
Full backward compatibility with all Xbox One games
Cheaper MSRP

Anaconda/Xbox Series X/Project Scarlett

4K 60FPS
Disc drive with 4K UHD playback
Super-fast SSD that can be used as VRAM
7nm AMD SoC with 8-core, 16 thread Zen 2 CPU at 3.5GHz and Navi GPU
16GB GDDR6 RAM
12 TFLOPs of power
2x GPU power as Xbox One X/aims to replace Xbox One X
Full backward compatibility with all Xbox One games
More expensive MSRP

Xbox Series X coverage:

Sony is expected to reveal the PS5 in a special event in February 2020. The console will release in Holiday 2020, and it may cost $499.

Check below for more info on everything we know about the PlayStation 5 so far:

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PlayStation 5 specs and details:

Custom SoC with second-gen Navi GPU, Zen 2 CPU
8-Core, 16-thread Zen 2 CPU at 3.2GHz
Navi GPU at 2.0GHz with 36 Compute Units
Navi, Zen SoC uses new AMD RDNA 2.0 architecture
Ultra-fast SSD
Support for 4K 120 Hz TVs
Ray-tracing enabled
8K output support (for gaming)
Plays all PS4 games
Separate games that ship on BD-XL Blu-ray discs
New controller with extensive haptic and tactile feedback

	Today	Yesterday	7 days ago	30 days ago
	$204.46	$204.46	$204.66	$189.99	Buy
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