How The China-USA Trade War Could Impact Game Hardware

[Rubeus]

So Switch can cost 25% more as early as this summer because of tariffs? Kick that trump ass!


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How The China-USA Trade War Could Impact Game Hardware


During the 1980s and 90s, Nintendo made its game consoles in Japan. Now, they are made in China and could get more expensive for American consumers.

Since late January of last year, the US and China have been in a trade war. As The New York Times reports, the Trump administration has plans to tax all Chinese-made clothes and electronics imported into the US. Those taxes would be passed onto the consumer in the form of price hikes.

What does that mean for Nintendo? As Nikkei notes, Trump’s plan would see a 25 percent tax on the Nintendo Switch in the US, where around forty percent of all Switches are sold. This tax would lead to a more expensive product.

Nintendo president Shuntaro Furukawa is quoted as saying, “The effect on business is huge, so we are closely watching what happens next.”

While the Nikkei article does not mention Nintendo’s rivals, the Kyoto-based company would not be the only game hardware company impacted by the trade war.


https://kotaku.com/how-the-china-usa...are-1834944974

[spider-prime]

Am I the only one that is happy when things get more expensive? It actually stops me from impulse buying. So I save money!

[Hagane]

Get off the internet, that's how you actually save money.

[spider-prime]

Actually, being on the internet is saving me money! HURRAY FOR PIRATING!

[Hagane]

Yeah, too bad that doesn't help you out with the limited, special edtion or day one junk.

[spider-prime]

crap, he's right! LOWER PRICES! I need to buy everything day one!

[Nem]

I think it's great because people don't understand how bad Trump is until it hits them in their wallet.

The switch is already overpriced as it is, this is gonna be hilarious.

[Rubeus]

It's going to impact all consoles -- does iPad consider a "console"?

Trump Tariffs Could Raise Game Consoles Prices In The US

The Trump administration is proposing a 25% tariff on game consoles, controllers, and other Chinese imports.


Tensions between the United States and China have been escalating in recent months due to the countries' ongoing trade war, and the price of game consoles and accessories could be affected as a result. GameDaily reports that the Office of the United States Trade Representative has proposed implementing a 25% tariff on more goods imported from China, including video game consoles, controllers, and even board games like chess and checkers.

Tariffs are effectively taxes paid by domestic companies. To offset these expenses, companies often raise the prices of products affected by tariffs, passing the cost onto consumers who end up paying more for certain items. While game consoles would be swept up in the last wave of tariffs, they are far from the only products that would be affected; thousands of goods manufactured in China would be subject to the tariff.

This certainly isn't the first instance where the Trump administration's hardline stance against China has had negative repercussions for the video game industry. The US already imposes a 10% tariff that affects some Nvidia and AMD graphic cards manufactured in China. If the new tariff is implemented, it could cause console makers to increase the prices of their systems in order to recoup the added expense.

The news comes just as the video game industry is gearing up for a new generation of consoles. Sony has in recent weeks been revealing details about its next-generation PlayStation, while Microsoft is known to be working on a next-gen Xbox, which rumors suggest could be unveiled at E3 2019. New video game consoles already carry a fairly hefty price tag, and that price could only rise if the new tariff is indeed imposed.

The United States Trade Representative will hold public hearings about the proposed tariff on June 17, shortly after E3 2019 ends. The result of those hearings will determine whether or not the tariff is implemented. If the USTR does go through with the tariff, it could go into effect as soon as June 24, according to GameDaily.



https://www.gamespot.com/articles/tr.../1100-6467159/

[spider-prime]

Oh noes! You mean these companies will have to make their shit in Taiwan instead of China! The horror!

[Nem]

Originally Posted by spider-prime

Oh noes! You mean these companies will have to make their shit in Taiwan instead of China! The horror!

Relocating factories is not an easy task. They may do that but it will take years.

Until then the little guy pays for it ofc. You weren't expecting Execs to take cuts on their millionaire salaries right? xD

[spider-prime]

Foxconn has lots of factories. Probably won't be too hard for them. They probably already do have factory lines for the same products in other countries.

But, I think there are workarounds to that tariff tho. Like just shipping to one point and then sending the products there as point of origin, so that way they wouldn't have to get taxed on it if they remail it from another country.
These companies know how to save money, if it works, they will do it even if it's illegal.