President Donald Trump plans to increase tariffs on goods produced in China which would affect a large range of consumer goods including video game consoles. Well, Nintendo, Sony and Microsoft are just not having it and teamed up to ask Trump to overlook gaming hardware as part of the new tariff increase and skip tariffs on gaming consoles.
Microsoft, Sony and Nintendo sent a letter dates 17 June 2019 to the Office of the United States Trade Representatives requesting that video game consoles be removed from the list of products covered by the new tariffs.
The letter claims the new tariffs on consoles will stifle innovation and harm the larger gaming industry ultimately impacting jobs and injuring consumers.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”#00D2FF” class=”” size=”21″]”While we appreciate the administration’s efforts to protect US intellectual property and preserve US high-tech leadership,” the three companies said in the letter, “the disproportionate harm caused by these tariffs to US consumers and businesses will undermine — not advance — these goals.”[/perfectpullquote]
Sony, Microsoft and Nintendo are not the only ones who are opposed to these new tariffs. The Entertainment Software Associaton (ESA) also hopes they don’t come into effect saying the video game industry is a leader in job creation, trade, innovation, audience engagement, consumer protection and creative expression.
According to the ESA, the tariffs will erode innovation, decrease job opportunities for American workers and increase prices for consumers.
On the brink of a new hardware refresh for both Sony and Microsoft, this tariff increase could see the next-gen consoles come into the industry at a much higher price tag. This tariff hike would affect all hardware aspects of the consoles including accessories. Nintendo is also reportedly working on new Switch revisions which would also be impacted by these new tariffs.