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Microsoft, Sony & Nintendo have joined forces against the U.S Government to warn them about the effects of China Trade Tariffs will have on the Gaming Industry. As Gaming consoles production will become expensive & it will put a bad effect on the consumers.

The Recent Tariffs proposed goods imported from China would hurt every individual consumer, Employees jobs will be at big risk & it can badly stifle innovation. As per these companies analysis, if tariffs get increased by 25%, Consumers would have to pay $840 million on gaming consoles & that is too much!

Microsoft, Nintendo & Sony wrote a joint letter to US Government & it stated-

“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 letter was 7 page long & companies mentioned every possible effect a consumer or gaming industry will get, They Later added-

“The video game console supply chain has developed in China over many years of investment by our companies and our partners,” the companies wrote. “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.”

“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,” the companies said. 

“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,” they added. 

It is not sure when this tariffs while go into effect but it will be definitely bring a big effect on gaming industry. Trump has got criticized by many on this move. Now we have to see what will be the answer of U.S Government, Will they bring any exemption? We have to wait for this!

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