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Microsoft, Nintendo and Sony unite against US tariffs on consoles

Microsoft, Nintendo and Sony unite against US tariffs on consoles

Microsoft, Nintendo and Sony have banded together in opposition to the proposed tariffs on imported goods from China to the US.

In a joint letter, the trio of platform holders points out the damage the tariff could inflict to the video game industry, such as putting thousands of jobs in the US at risk, stifle innovation and harm consumers, developers, retailers and console manufacturers.

The document is signed by Microsoft VP, deputy general counsel Linda K. Norman, Sony general counsel and SVP of legal and business affairs Jennifer Liu and Nintendo of America general counsel and executive VP of business affairs Devon Pritchard.

News broke in May that because of the US government’s trade war with China, electronic goods - including video game console - could see a 25 per cent tariff placed on them.

“Enormous Impact”

“As leading video game console manufacturers, we submit this separate submission to highlight the enormous impact and undue economic harm that proposed tariffs on video game consoles would have on the entire video game ecosystem,” reads the document.

Further on, the letter states the economic contribution of the video game industry to the US:

“The US video game industry generated total revenue of $36 billion in 20172 and $43.4 billion in 2018, reflecting over 20 per cent in growth. This industry, directly and indirectly, employs more than 220,000 people.

“99.7 per cent of video game companies qualify as small businesses and can be found in each of the fifty states; many develop software for video games across the range of platforms, from PCs to mobile, including the video game consoles that we manufacture, and are an integral part of the booming app economy.”

Amidst the possible negative impact of US tariffs on Chinese-made electronics, Nintendo has reportedly withdrawn a section of its Switch production in China.


Staff Writer

Matthew Forde is a freelance writer from Yorkshire, who's work has been published for Tech Radar, Nintendo Life, Kotaku UK and more. He regularly attends Smash Bros. tournaments, while trying to keep up-to-date on everything pop culture related - particularly superheroes. You can find him on Twitter @Forde999.

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