no img no img

Write what you are looking for and press enter to begin your search!

Logo
live-news-icon

Live News

Honkai Star Rail 2.7 Update Takes Off From Penacony For Real This December: In an intense match, the Lone Wolves came out victorious. Read all about the big night here // Dragon Ball Z Kakarot Dragon Ball Daima DLC Launches In 2025: In an intense match, the Lone Wolves came out victorious. Read all about the big night here // Wuthering Waves for PS5 Release Date Revealed: In an intense match, the Lone Wolves came out victorious. Read all about the big night here
post-16 post-13

Console Wars Armistice Declared To Face Common Enemy: Trump

Something unprecedented has happened. The big three in video games; namely Sony, Microsoft, and Nintendo have actually united and banded together for a singular purpose, and that is to counter the United States government’s proposal to increase tariffs on goods imported from China.

In its ongoing trade war with China, the US administration under Donald Trump recently proposed $300 billion in tariffs, or taxes on foreign goods, on most consumer goods, and this includes a whopping 25 percent tariff on video game consoles (PS4, Xbox One, Nintendo Switch, etc).

In the joint letter sent by three companies to the U.S. government, they argue that 96 percent of video game consoles imported by the U.S. are actually manufactured in China due in part to the custom hardware that can’t be easily obtained anywhere else in the world.

Here’s part of their argument against the tariff:

“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.”

While the companies don’t exactly mention how much more consumers will have to pay if the 25 percent tariff is approved, they do argue about how the increased costs will negatively affect both larger and smaller companies in the games industry.

“Because of the deep interdependence of video game consoles and game software, and due to the price sensitivity of video game console purchasers, tariffs on video game consoles would not only harm our companies, consumers, and retailers, but will also disproportionately harm the thousands of small and medium-sized software and accessory developers in the United States.

Thus, these tariffs would have a ripple effect of harm that extends throughout the video game ecosystem.”

It looks like the argument present by the three companies are more focused on how the tariff will impact the entire games industry and the business it contains, instead of how it will affect consumers who will likely have to pay a lot more than they currently do (which is still a grossly large number even without the additional tariffs).

According to Kotaku, it’s still unconfirmed when or even if the 25 percent tariffs on goods will be implemented, especially since the U.S. and China are still in the midst of ongoing discussions.

Here’s hoping that consumers don’t have to take the brunt of the effects, whatever the decision turns out to be. The games industry is already filled with an excessive amount of spending, due to the questionable and exploitable nature of content like loot boxes and microtransactions.


 

Related News

post-07
Andrew Garfield Speaks Out On Spider-Man No Way Home

Rumours of Tobey Maguire and Andrew Garfield reprising their former roles as Spider-Man in the upcoming Spider-Man No Way Home have surfaced from time...

post-07
Apex Legends Will Be Getting A Halloween Event

We have officially entered the spookiest month of the year so it's only appropriate for us to prepare for the upcoming Halloween-themed events in gami...

post-07
Scream Unveils New Poster & Young Blood Featurette

United International Pictures Malaysia has unveiled a brand new poster for the upcoming Scream, the fifth entry in the long-running horror franchise f...

Write a comment

Your email address will not be published. Required fields are marked *

Tournament Tool Kit

Kakuchopurei Community

Popular Posts

post-17
Ultraman Rising’s Ultraman & Emi Are In Gigabash: Check Out Their Moves Here
post-17
Indie Jam Returns for 2024: What You Need To Know
post-17
Vampire Survivors: Ode To Castlevania – All New Weapon Evolutions
post-17
Infinix Teams Up With Honor Of Kings & Mediatek For Pro-Powered Gaming Phone Showcase
post-17
Four Ways to Increase Your Chances of Winning in EA Sports FC 25’s Rush
post-17
Romancing SaGa 2: Revenge of the Seven – Post Game Guide & New Game+
post-17
Romancing SaGa 2: Revenge Of The Seven – How To Unlock All Classes & Races
post-17
Diablo 4: Vessel Of Hatred – 10 Ways To Maximize Your Demon-Slaying Fun In Sanctuary
post-17
Metaphor: ReFantazio Endings Guide – How To Avoid All Bad Endings
post-17
Diablo 4 Vessel of Hatred: Kurast Undercity Guide
post-17
Diablo 4 Vessel of Hatred: All Runes Tier List
post-17
Diablo 4 Vessel of Hatred: Season 6 Classes Ranked & Best Builds
post-17
Diablo 4 Vessel of Hatred: All New Uniques In The Expansion
post-17
From Game Changer To Growth Spurt: Ammobox Studios’ CEO Unveils What’s Next
post-17
The Best PC Games To Play Right Now
post-17
Fatal Fury: City of the Wolves – What You Need To Know About The Upcoming 2025 Fighting Game From SNK
post-17
Deadpool & Wolverine: Most Iconic Team-Ups & Moments In Comics, Movies & TV
post-17
Main Game: How To Watch Malaysia’s Best Video Game Show Created By Kakuchopurei & RTM
post-17
Hawkeye Episode 6 Finale Easter Eggs & Breakdown
post-17
Marvel’s What If…? Crew Explains Why They Went 3D Over 2D & A Scrapped Episode That Was Too Close To GOTG 3
post-17
We Talk To Hayden Christensen About Star Wars, Sequels, & Prequels
post-17
Sea Of Stars Might Get DLC Post-Launch
post-17
The Book Of Boba Fett Episode 7 Breakdown & Easter Eggs Explained