There likely aren’t many things that Nintendo, Sony, and Microsoft could all agree on, but there is at least one. The three major console manufacturers recently came together to write a joint letter aimed at the Trump administration. The letter expresses all three companies’ direct opposition to proposed trade tariffs aimed at China.
Should they be implemented, these tariffs would force all three companies to raise the prices of their respective consoles. Considering how expensive game consoles already are, this would be a very bad scenario for both console manufacturers and consumers.
Nintendo, Microsoft, and Sony Anti-Game Console Tariffs Letter
If they were to be ratified, the proposed tariffs would essentially add a 25 percent tax onto imported Chinese goods. As of 2018, roughly 96 percent of all game console manufacturing operations are conducted in China. This means the tariffs would hit console manufacturers particularly hard since they’d have to relocate their entire production outfit. Nintendo, Sony, and Microsoft explained as much in the letter:
“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.”
Essentially, the game console tariffs would force manufacturers to raise the prices of their respective consoles. Since a new game console already costs several hundred dollars, increased prices would drive away more cost-sensitive buyers. As the three console companies also explain in their letter, the tariffs would do much more harm than good:
“While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals.”
If you want to read the full joint letter, you can download it in PDF format here. For more console-related news be sure to read about the upcoming Xbox One/PC Halo Infinite beta. Sony also recently unveiled the free PlayStation Plus games lineup for the month of July.