Nintendo, Sony, and Microsoft Team Up To Fight Tariffs

Posted on by Ryan

It’s not often that you see all three major video game console companies join together for a cause, but they have none done so against President Trump and his tariffs against China.

This is because that 96& of video game consoles in the United States are made in China and it could also have a huge impact programmers and accessory developers. Part of their statement reads as follows:

In 2018, over 96% of video game consoles imported into the United States were made in China. The video game console supply chain has developed in China over many years of investment by our companies and our partners. It would cause significant supply chain disruption to shift sourcing entirely to the United States or a third country, and it would increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions. 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. 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.

This could also see a 25% increase in the cost on consoles for many consumers within the United States. Stating:

A price increase of 25% will likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season