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Letters from the Front

If you remember my article last month about Tariffs and how I explained I would keep a keen eye on the situation regarding Tariffs and Videogames then here is the said update.

In a display of confidence and solidarity, the three big ones issued a statement back on June 26th against the President’s proposed 25% tarrifs on consoles being manufactured in China. As we all know that the increased price raise will be moved over to the consumers and it would risk the jobs of more than 220,000 Americans, including small-time business owners.

The issue is a soon to be finalized tariff proposal that targets a list of goods from China and if consoles are on that list then expect the price of the next generation consoles to go up by 25% which would be a very steep asking price for entry into the next generation of hardware.

The letter goes on to explain that if the tariffs were put in place, it would disrupt all the big three companies and add costs that would depress sales of not only the consoles themselves but the software and the services like Xbox Live or Playstation Network that drive the profitability of console sales and the markets that they belong too. That high asking price of what possibly could be $525 to $600 would put the next generation consoles out of the hands of many American families next Holiday season, the end result could seriously harm not only the console market but the PC market and the TV market as well.

The deadline for a rebuttal was last week. No final deadline has been offered by Donald Trump as to when then the tariffs would be finalized. I will keep my eye on this and I will update this thread.

My take:

I hate to see people lose their jobs as this would make the next generation hardware sell less then what they would sell normally if they were at a solid $500 USD. This proposed tariff would make the industry turn in a downward spiral that would end in a crash and we don’t want a crash plus thousands of developers would lose their jobs but that is for now is the worst case scenario and we’ll have to see how this plays out. What do you think of these proposed tariffs? Let me know down below.

( If you want to see more news reports like this, please let me know down below. I’m still trying to find a good balance for this News Report series as I do more content on the site.)

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