The conflict between the U.S. and China has impacted the tech industry, notably impacting the business of Chinese mobile smart device manufacturer Huawei and any companies that deal with it. Now, newly proposed taxes on video game consoles are bringing the issues over to the gaming industry. The Trump administration has proposed $300 billion in tariffs but, as reported by Kotaku, Sony, Microsoft, and Nintendo have made a joint statement opposing the move.
The three companies argue that the tariffs will cause disproportionate harm to business overall and the joint letter specifies three ways that the proposed taxes will harm the video game industry:
- Injure consumers, video game developers, retailers and console manufacturers;
- Put thousands of high-value, rewarding U.S. jobs at risk; and
- Stifle innovation in [the gaming] industry and beyond.
Timing of these tariffs couldn’t come at a worse time for major home gaming companies. We’re on the cusp of a shift into the next generation of home consoles with Sony’s PS5 and Microsoft’s Project Scarlett due sometime in FY 2020. These additional taxes could stifle the early and overall adoption by raising the cost significantly….
https://www.digitaltrends.com/gaming/sony-microsoft-nintendo-us-china-trump-tariff-taxes-letter/
