Nintendo, Microsoft, and Sony Contest Trump Administration Trade Tariffs

[Rubeus]

Trade tariffs don't end with moving out of China alone, Trump just announced their next target would be Vietnam before G20, so even if the big 3 moves the production lines to Vietnam like many other companies, Trump is going to raise tariffs in Vietnam soon, that won't stop until all companies move production lines back to US. This is madness

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Nintendo, Microsoft, and Sony Contest Trump Administration Trade Tariffs
Trump's trade war drags video game developers onto the battlefield.


Earlier last week, Nintendo, Sony and Microsoft all petitioned the US government to reconsider their stance on tariffs placed on goods imported from China to the US.

The trio of video game and console developers issued a joint statement responding the USTrade Representative’s request for public comments regarding the implementation of said tariffs, saying “We respectfully request that the Administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products.”

The tariff is being proposed by the Trump Administration as part of the wider economic stand-off between the United States and China and would include a 25% increase on video game consoles, controllers, arcade machines, and even board games.

The trio of console manufacturers explain in their letter that "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."


Increased Tariffs, Reduced Sales

The companies claim that the increased tariffs would not only mean higher costs for their audiences, but that the increase could potentially affect not just the console manufacturers themselves, but the 65,000-odd game developers in the United States as well. "Reduced video game console sales unquestionably will lead to reduced sales of games, which is highly likely to have a deleterious effect on the small and medium-sized businesses that make these games, and on the workers whom they employ."

Of course, the big question is what sort of effect these tariffs may have on US consumers. The letter claims that "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. ... Even after accounting for new tariff revenue, the result is a net $350 million loss for the U.S. economy for each year the tariffs remain in effect, with the burden carried by U.S. consumers."

Stadia and xCloud avoiding the Tariff?

What say you? Are you willing to pay an extra $100 on a $400 console, or will this just be another reason to get on the streaming bandwagon with services like Google Stadia or Microsoft xCloud? Let us know in the comments and for more updates on all the newest consoles, regardless of their cost, stick around on IGN.


https://www.ign.com/articles/2019/06...tariffs-letter

[Nem]

It's fine with me.

I would like a console to be cheaper in Europe for a change. xD

[spider-prime]

lol just watch, Gaming PCs will end up cheaper than consoles now.

But, the whole point to these high "tariffs" is to seem unreasonable and then they will settle for what they really want for deals.

It's like selling your house, ask for 25k more than what you want, they ask for 25k less for the asking price and you got what you want.
Or be like me and sell your house for 26k more than your asking price! lol xD

But, I guess we will see what happens. Every remember everyone complaining about Greece and their problem with video games being gambling so they banned them and that lasted one month. haha

When it comes to money, they will always backtrack to whatever makes them money or go broke.

[Paper exe]

Does that not volidate free trade and World Trade Organisation rules which the US is part off?

Note once these decisions served people. Only serve the large corporations that has access.

[spider-prime]

well, I was right, they are just moving everything to Vietnam instead of China.