The three console manufacturers have issued a joint statement arguing against U.S. tariffs for China, that could raise the price of consoles.
It often seems like real world news has little or no impact on video games, but thanks to the Trump administration that’s no longer the case.
Earlier in the week there was the news that League Of Legends had been banned in Iran and Syria because of U.S. sanctions and now the looming trade war between the U.S. and China has caused the seemingly impossible: a team-up between Nintendo, Sony, and Microsoft.
They’re upset at the proposed tariffs on Chinese goods, of up to 25%, that would affect all three consoles because they’re manufactured in China – which would inevitably cause the companies to raise the cost of the hardware to compensate.
The joint statement was sent to Joseph Barloon, the general counsel to the Office of the United States Trade Representative and argues that the tariff could stifle innovation, lead to significant job losses, and raise prices for consumers and retail.
‘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’, reads the statement.
The companies argue that video game-related products should be removed from the list of tariffs, which has not yet been finalised.
‘Each video game console comprises dozens of complex components sourced from multiple countries. A change in even a single supplier must be vetted carefully to mitigate risks of product quality, unreliability, and consumer safety issues,’ says the statement.
‘Tariffs would significantly disrupt our companies’ businesses and add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment.’
Of course, Sony and Nintendo are not American companies, even though they have major divisions based stateside, but it’s unclear whether that, or indeed anything else, will sway the U.S. government’s decision.
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