​Trump's tariffs will supposedly make video game consoles cost more

In a joint letter written to the Trump Administration, the technology giants Sony, Nintendo and Microst have warned that the government's new tariffs on China will drastically harm the video game industry and cost US consumers an extra $840 million a year more for game consoles.

The purpose the Trump Administration's new tariffs on China is the protection US intellectual property and high-tech leadership. However, Sony, Microst and Nintendo all agree that these tariffs "will undermine—not advance—these goals" and cause "disproportionate harm to US consumers and businesses."

"As significant as the impact tariffs would be for video game console makers and consumers, the harm to the thousands US-based game and accessory developers who depend on console sales to generate demand for their products would be equally pround," the companies write in their letter. "The ripple effect harm could be dramatic."

All three companies warn that 96 per cent all video game consoles were made in China last year, and disrupting their complex supply chains with the implementation these new tariffs will cause significant harm to a sector which generated $43.4 billion in total revenue last year and employs more than 220,000 people. Because this fact, all three companies have asked that video game consoles be exempt from the tariffs.

"Video games are a core part the fabric American entertainment culture. Two out three households have at least one video game player and 60 per cent Americans play video games daily," they added. "A price increase 25 per cent will likely put a new video game console out reach for many American families who we expect to be in the market for a console this holiday season."

Cameron is Mixmag's Jr. Editor. Follow him on Twitter


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