Japan did this last Covid19 era. Allot of business moved away from China and went back to Japan and some move to other Asian countries.
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Sony is Developing a Strategy to Mitigate Potential Import Tariffs on PlayStation Hardware
- Thread starter Lunatic_Gamer
- Start date
- News Drama Business
Perhaps you can relay my message to your President. These things are more complex than bossing/bullying your contractors.
Magic Carpet
Gold Member
PS5 with only 32 ROPS like a Series S? They could shave off at least 2 hundred bucks from the price.or do what nVidia did. Give you little bit less ROPS
Unknown?
Member
They build factories in Mexico lightning speed.
DaleinCalgary
Member
Discussion on this is way beyond most peoples comprehension here.
Tiago Rodrigues
Member
lmao!
LiquidMetal14
hide your water-based mammals
Good, bring those jabs back to the US a little.
I expect some major movement in the next 6-12m. Shits changing fast in the US and for the better.
Been watching the 10y rate changes. People know the changes are going to take hold with the current admin. Going to be great for US.
I expect some major movement in the next 6-12m. Shits changing fast in the US and for the better.
Been watching the 10y rate changes. People know the changes are going to take hold with the current admin. Going to be great for US.
StereoVsn
Gold Member
Yes, when you don’t have environmental reviews, labor laws and can pay off officials it’s super fast indeed.
Again, I think long term it’s a good solution to argument with US based factories, but it isn’t something that will be done quickly.
StreetsofBeige
Gold Member
I thought they were made in Japan. Googled it. In China. But PS4's were made in both Japan and China.
rabbity-thing
Member
Build factories in the US? As if. The REAL simple solution is to dump money into the pockets of representatives, leaders, and judges. If they wait a few years, they can even greatly effect the outcome of our elections. Maybe Sony is unaware, but every branch of the American government is currently for sale to the highest bidder.
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Gameplay Gods Bless
Member
People said the same thing the last time Trump started all this tariffs shit. You can only cry wolf so many times before people stop caring.
nial
Member
PS5s are made in Japan as well.
StereoVsn
Gold Member
Yep. And as we can see for under $300mil you can just pretty much buy doing what the hell you want with the government. It’s pretty cheap overall.
How much would that raise the prices tho?
At some point you have to wonder which is cheaper, 25% tariff or more expensive labor.
And no, no american wants to work for Vietnamese labor prices. So let's not pretend labor wouldn't rise significantly
Thebonehead
Gold Member
Should also make it out of US steel whilst they're at it
Setsuna Mudou
Member
people are about to get what they voted for
That is why I said before its a bit of a gamble but it will solve the serious problem of unemployment in USA. There are many ways to still reduce cost which still retain a decent salary in USA. Maybe for example, giving tax incentives, and easy and cheaper access to resources in USA especially the needed raw materials which are already available in USA. USA and territorities, has so many natural resources for raw materials. Well I think Pres Trump and his staff and economist since studied this since campaign days and they are well prepared and I hope and pray that the gamble work that jobs will be created but price will remain stable along with better quality of products and services.
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Panajev2001a
GAF's Pleasant Genius
Why do I feel like someone at SIE US went full Baldrick?
Hopefully not, hopefully they do have a good plan.
Hopefully not, hopefully they do have a good plan
.
FewRope
Member
Nah
Esppiral
Member
And the rest of the world will suffer from their dumb votes, because we know how corpos work, they will unilaterally increase the price everywhere because why not...people are about to get what they voted for
Darkness_Arises
Member
Having seen how American cars fare, this is definitely not true. Only somebody living under a rock would make such claims. I have no love lost for China, but China is the hub for high end manufacturing and innovation. It has left the western nations far behind in this area.
Spiral1407
Member
Either way, it's gonna result in a higher prices for US consumers. I think that's the part everyone is forgetting.
StereoVsn
Gold Member
I was reading about recent price increase in UK for some electronics because of US tariffs in China.
Of course Corpos will take this opportunity to profit everywhere.
TheThreadsThatBindUs
Member
My mate Phil operates a caravan of pack-moose he uses to smuggle goods illegally across the border. Sony should hit me up.
fart town usa
Member
"YoU cAnT jUsT bUILd sTuFf AnD dO tHiNgS!!"
fart town usa
Member
It took years to deindustrialize. So what if it takes years to bring the industry back.
Edit- Apple is investing 500 billion into US manufacturing. An estimated 20k jobs will be created. We can, and should, build up the US manufacturing base. It's beyond retarded to willingly get rid of your manufacturing base.
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StereoVsn
Gold Member
Oh, I absolutely agree on that point, but that’s not going to help with price inflation over the next few years.
Building up supply chains, training staff, standing up factories and more will take time.
Life Diff
Member
How much do you think a PlayStation manufactured in the US would cost? Let me give you a hint more than $700
Stockpiling a certain level of strategic inventory...to me this implies a significant qty of stockpiled units. A years worth?
RoboFu
One of the green rats
here is what's going to happen. It also happened with the uk and brexit.
These companies will just set up warehouses in the closest non tariff region. Ship from china to those warehouses then ship from there to the US under a different name.
It's already been happening throughout the world for ages.
But again if it does increase prices ( that are always increasing anyway ) so be it. It will work out best in the long run. The one thing I hate is to listen to people cry because of fear mongering.
These companies will just set up warehouses in the closest non tariff region. Ship from china to those warehouses then ship from there to the US under a different name.
It's already been happening throughout the world for ages.
But again if it does increase prices ( that are always increasing anyway ) so be it. It will work out best in the long run. The one thing I hate is to listen to people cry because of fear mongering.
jasondefaoite
Member
PS5 'made in' Thailand/Vietnam.
Motherboard manufactured in China. Shipped to Thailand/Vietnam. BIOS flashed and covers installed. 'Transformation'. Country of origin now Thailand/Vietnam. End.
Motherboard manufactured in China. Shipped to Thailand/Vietnam. BIOS flashed and covers installed. 'Transformation'. Country of origin now Thailand/Vietnam. End.
Mibu no ookami
Demoted Member® Pro™
People, I don't think are understanding nuanced strategy here...
There's no silver bullet here, you attack a problem like this from multiple angles
How many PS5s does Sony need for the next 2-3 years in the US? At most 30 million right? Any more and it's probably a good problem to have. That means you maybe try and stockpile 10 million units. At 2 million units manufactured a month, you could have this in place in 5 months, probably less if you're maxing out production lines. The other 20 million units you're hoping won't be subject to tariffs, but maybe you do 5 million out of taiwan and 5 million locally here in the US or some mix depending on cost. The last 10 million you're probably on the hook for, but that's when you worry about raising pricing, but everything else probably raised prices by then, so it won't be out of the blue.
There's no silver bullet here, you attack a problem like this from multiple angles
- Stockpiling inventory ahead of tariffs which won't be subject to tariffs
- This means all units sold while this inventory lasts won't cost considerably more money for the company outside of reduces cash flows and opportunity cost
- Some local manufacturing
- Yes, local manufacturing will cost more, but you can eat some of this cost if you keep the numbers small and focus primarily on your stockpile
- Ship from areas with lower tariffs
- You eat some of the margin on your product but, again if you keep the numbers small and focus primarily on your stockpile, it won't be that bad
How many PS5s does Sony need for the next 2-3 years in the US? At most 30 million right? Any more and it's probably a good problem to have. That means you maybe try and stockpile 10 million units. At 2 million units manufactured a month, you could have this in place in 5 months, probably less if you're maxing out production lines. The other 20 million units you're hoping won't be subject to tariffs, but maybe you do 5 million out of taiwan and 5 million locally here in the US or some mix depending on cost. The last 10 million you're probably on the hook for, but that's when you worry about raising pricing, but everything else probably raised prices by then, so it won't be out of the blue.
existensmaximum
Member
They votes may or may not be dumb - but why wouldn't one vote according to your own beliefs and conviction regardless of "the rest of the world"? When I vote in my country I certainly don't think about possible consequences for other countries.
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