If you keep pace with global politics or happen to live in North America, you might have learned of recently proposed tariffs on Chinese goods by the Trump Administration.
In a rare performance – Nintendo, Sony and Microsoft have teamed up (in a seven-page letter) to warn the American government of the potential impact on the video game industry. They explain how a 25 percent tariff increase would result in US consumers paying more than $ 840 million more for their consoles.
This letter explains how 96 percent of all video game systems were manufactured in China last year and the supply chain needs to be redesigned to avoid these costs.
"The video game console supply chain has evolved over many years in China through investment from our companies and partners. If procurement were completely relocated to the US or a third country, this would lead to a significant disruption of the supply chain and the cost of products already produced in conditions of tight margins, even beyond the cost of the proposed tariffs. climb.
It is further said that the proposed tariffs "stifle the sale of video game consoles and the games and services that promote market profitability," and a 25 percent increase in new consoles for the average American family on this holiday Reach "would bring season.
There are currently trade talks between the United States and China. These newly proposed tariffs could be phased out if significant progress is made at the G20 summit in Osaka this weekend.