Sony (NYSE: SNE) recently confirmed that its next-generation video gaming console, the Playstation 5, will arrive in time for the 2020 holiday season. Expectations run high for the Playstation 5 as the current console, Playstation 4, has been a key revenue driver for the storied electronics conglomerate. The gaming division contributed nearly 24% of the company's Q1 revenue.
But challenges lie ahead. Earlier this year, the Trump administration announced new tariffs on goods produced in China, which include up to a 25% import duty on video game hardware.
As if that isn't enough, new competition arrives on Nov. 19 with Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) debut of its own gaming platform, Stadia, dubbed the "Netflix of gaming" since it streams games over the internet.