In the event that people stay aware of worldwide politics to live in North America, people may have heard about recently proposed tariffs on Chinese products by the Trump administration.
In an uncommon presentation – Nintendo, Sony and Microsoft have united (in a seven-page letter) to caution the American government about the effects this could possibly have on the video game industry – clarifying how a 25 percent tariff increment would result in US buyers paying more than $840 million more for their consoles.
This letter proceeds to clarify how 96 percent of all video game systems were built in China over the previous year and having to rework the supply chain to avoid these expenses would probably make significant interruptions generation.
“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.”
It’s additionally expressed how the proposed tariffs would “depress sales of video game consoles and the games and services that drive the profitability of the market”” and a 25 percent expansion would probably put new consoles “out of reach” for the average American family this holiday season.
As of right now, trade talks between the United States and China are continuous. These recently proposed tariffs could come to a halt if significant progress is made at the G20 Summit in Osaka this weekend.