The Big Three responds to the President’s new Tariffs on Video Game Consoles.


Credit: Sony, Microsoft, Nintendo, Forbes

The Big Three Nintendo, Sony, and, Microsoft has been in a Console war for years, one would try to outdo each other to gain more fans and players, but this time they are facing a similar threat and from the looks of it they are calling a truce in this war. A month ago we reported on a new Tariff Law that was proposed by President Trump and the Office of the United States Trade Representative, with it this would affect potential goods categories to be hit with newer, steeper tariffs. But the gaming companies shared evidence on how the tariffs would impact the industry and the US Economy, stating that if they are imposed by the Government on a mega electronics producer (which is China) would result in “enormous impact and undue economic harm which would be directed towards the entire video game ecosystem.”

The letter was dated June 17th, a joint response to the Trump Administration’s suggestion would impact gaming consoles, summarizing the effects from the Tariffs in three points:

  1. The Tariffs would injure consumers and developers as well as others involved in the industry.
  2. Putting thousands of US jobs at risk
  3. For the last one, it would “Stifle Innovation” in and outside of the Industry.

While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals, a price increase of 25% will 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, for those purchases that do go forward despite tariffs, consumers would pay $840 million more than they otherwise would have, according to a recent study prepared for the Consumer Technology Association by the independent economic group, Trade Partnership.

There are rumors that Nintendo has already begun moving their productions out of China, most likely due to the tariffs; have to remember that those tariffs are not in effect yet or even if they will be implimented; it depends on the administration’s discretion. Retailers might feel the effect of the tariffs two, for example, would be Walmart and Gamestop.

We’ll learn more about the possibilities of the Tariffs if they will be put in effect or canceled altogether, but for now, keep a eye on our website for more ongoing coverage.

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