The dispute arose when Sony applied to the HM Customs & Excise in the UK, which helps advise European Commission trade officials. Customs & Excise took the view that the PS2 is not significantly different from the original PlayStation which was classified as a games console.
According to FT.com, Sony is concerned about the tariff because the launch of PS2 in Japan and now in the US has incurred bigger losses than the company anticipated. If the classification of the PS2 is not changed soon, the losses will rise because, according to FT.com, Sony cannot afford to pass the losses on to customers.