Following Trump’s tariff hike, Sony, Microsoft, and Nintendo have come together to pen an open letter warning Trump that tariffs on Chinese goods will fundamentally cripple the gaming industry. Not only would the 25% hike harm employees but U.S. customers will end up paying $840 million USD more on consoles as a result.
The seven-page open letter states “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.”
According to Sony, Microsoft, and Nintendo, 96% of all gaming consoles were made in China last year, and restructuring supply chains to offset costs would be devastating to the sector. “The video game console supply chain has developed in China over many years of investment by our companies and our partners,” the letter continues. “It would cause significant supply chain disruption to shift sourcing entirely to the United States or a third country, and it would increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions.”
In other entertainment news, a new Playerunknown’s Battlegrounds game is in the works.
BREAKING: Nintendo, Microsoft and Sony warn US consumers will pay a total of $840 million more for consoles than they would without Chinese tariffs. https://t.co/HOeg4lzbu4
— VICE (@VICE) June 26, 2019
Sony, Microsoft and Nintendo have written a joint letter to oppose proposed tariffs from the Trump administration.
Tariffs on video game consoles are currently set to increase by 25%.
— Daniel Ahmad (@ZhugeEX) June 26, 2019
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