Effect of Trump Trade war against Gaming Consoles?

Nintendo, Sony and Microsoft worry about tariffs from China to cause the increase in the price of game consoles

China has been in the Trump government’s sights for several months. Technology giants like Huawei are being hindered. The Chinese company, number two in the smartphone market, for example, can no longer use Google’s Android operating system. But the customs duties that could apply to products from the Middle Kingdom are also a concern for leaders in the video game industry. Nintendo, Microsoft and Sony, represented by the Switch, XBox One and PlayStation 4 respectively for this generation, described in a letter the consequences of such a policy against China.

With an increase in the price of game consoles, manufactured mainly in China, the letter aims to shake up the Trump government and push it to abandon the trade war against China.

game consoles

It remains to be seen whether this letter will be read by Donald Trump.

Tariffs are a concern for console leaders

Nintendo, Microsoft and Sony are concerned about the increase in tariffs on products from China wanted by Donald Trump. The leaders explain in particular that such a policy could “harm buyers, game developers, resellers and console manufacturers”. These are also jobs that would be put at risk according to the trio and a brake on technological innovation for the video game market.

It must be said that last year, 96% of the consoles manufactured came from… China. A leading market in the assembly of products for sale worldwide. Nintendo, Sony and Microsoft explain that building consoles in the USA (or another country) would cause supply chain concerns and… a price increase! This increase would be in the order of 25% according to the trio.

The trio does not hesitate to strike a chord by explaining that such a significant increase would deprive thousands of families of a new Christmas console for American homes. A way to speak to the patriotic spirit of Donald Trump and his government. The American economy would also take a hit with a loss of $350 million!

In other words, for the trio, the losses would be serious.

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