Sony, Microsoft, and Nintendo have written a joint letter to the Trump administration, warning the government that its impending tariffs on Chinese goods will dramatically harm the video game industry and its employees. The companies argued that slapping on a 25 percent tariff would result in U.S. consumers paying $840 million more for game consoles.
“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,” the companies wrote in the letter.
For those purchases that do go forward despite tariffs, consumers would pay $840 million more than they otherwise would have, according to a recent study prepared by the independent economic group, Trade Partnership.
According to the letter, in 2018, over 96 percent of video game consoles imported to the United States were made in China. The video game console supply chain was developed in China over many years of investment by the three companies and their partners. The three added that, “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.”
Although China’s gaming industry today is primarily mobile-focused, it still has one of the biggest gaming markets in the world.
Featured Image Source: Nintendolife