Sony, Microsoft and Nintendo Joined Against the New Tariffs Proposed by Trump

Sony, Microsoft and Nintendo Joined Against the New Tariffs Proposed by Trump

Negotiations between the United States of America and China have been going on for many months now. The main topics discussed include the goods imported from the eastern country. In recent months the situation has become even tenser due to the proposal by President Donald Trump to raise the tax on imported goods to 25%.

This, as easily imaginable, has alerted most technology companies operating worldwide, since most of the components, of any device, are produced in China. As far as the gaming world is concerned, ESA (Entertainment Software Association) has already thought of expressing its disagreement. Now Sony, Microsoft, and Nintendo have also mobilized, who have made common cause by writing and sending a letter to the Office of the United States Trade Representative. In the document, the three videogame giants demand the exemption from the tax for gaming consoles because of “the enormous impact and the excessive economic damage” that it would cause.

According to what can be read in the letter, available at the attached address below, over 96% of consoles imported in the United States are produced in China. The high tariff that Trump would like to impose on consumers, developers, retailers, and manufacturers would put thousands of jobs in the United States at risk (more than 220,000 workers are employed in the sector) and slow down technological progress, not only in a gaming environment. According to Sony, Microsoft and Nintendo, the innovations that have been introduced in the gaming industry have also proved to be very important for the other technological fields. Specifically, the Wii and Kinect motion controls, the Hololens medical applications, and the Cell processor of PlayStation 3 which was used to build “the world’s most powerful supercomputer cluster for disease research based on simulation of protein folding”.

The three conclude by specifying that “video game consoles are not a priority in any of China’s industrial policies”, and that they, therefore, found themselves in the middle of crossfire while not being one of the main targets of the ongoing “battle” between the US and Chinese governments.