Microsoft, Nintendo & Sony collaborate to warn US government about China trade tariff’s...

Microsoft, Nintendo and Sony have collaborated to warn the United States government about the effects that the recent China trade tariff will have on the production of video games consoles.

In a seven-page letter to the Office of the United States Trade Representative, a representative from each of the three big console manufacturers put
in their word regarding the recent sanctions. Writing to General Counsel Joseph L. Barloon, the document explains, in detail, the problems that console manufacturers face.

The document focuses on not only the harm that the proposed tariffs would have on small and medium-sized software developers across the US, but also how it would hinder the future development of technology. In regards to console gaming, the trio notes that
console hardware is highly specialised with complex supply chains.

With companies like
Nintendo already pulling out of China for fear of the US’ trade sanctions, it’s no wonder that both Sony and Microsoft are also worried. The three note that removing their production lines outside of Chinese territories would result in a price hike of 25%,
eliminating the appearance of new console hardware from many American homes, therefore harming the income of American countries.

Of course, this is all delegated to the harm of American companies. Chinese hardware developers like

Huawei are already feeling the brunt of the US’ threats. With
FedEx suing the American government over the tariff threat and letters like this, will the US distance themselves from the trade ban?

https://mspoweruser.com/microsoft-n...-about-china-trade-tariffs-effects-on-gaming/

I came across this article, and thought it was worth sharing on here, especially since new consoles (Project Scarlett and PS5) are coming out by the end of next year. If a 25% tax gets applied to these console, then they will be even more expensive, which
might lead to a rough launch for both.

What do you guys think about this news, and the potential implications?

:)