IT MUST BE ONE OF THOSE DAYS, as of all the things we thought might happen, we didn't expect Nintendo, Sony and Microsoft to team up and take on the Trump administration.
The firms penned a letter to one Joseph Barloon, the General Counsel to the US Trade Representative, in response to the proposed 25 per cent trade tariffs against all good manufactured in China.
The US government has asked for public comment in response to its proposal, so such letters were arguably expected; we just didn't expect to see a shared camaraderie between the three gaming rivals.
Given the Nintendo Switch, PlayStation 4 and Xbox One are pretty much all built in China, the trade tariffs would bork the companies' supply chain and significantly disrupt their operations. They also noted it would mess with innovation efforts in the gaming industry, put high-value US jobs at risk and mess up the whole gaming ecosystem.
But the letter stated that the trade tariffs would have a negative impact on games console prices, as the trio would need to go elsewhere to get the parts for their gaming machines and thus would have to ramp the costs up.
"Given that retail margins on video game consoles are generally very tight, we see no possible reasonable scenario for retailers other than passing tariff costs down to consumers," the letter stated.
"A price increase of 25 per cent will likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season."
The US gov has yet to respond to the letter. And we suspect that Trump and his cronies probably don't give two hoots about the gaming industry, unless its some take on SimCity that involves building a wall to keep Mexicans out of the US.
If nothing else, at least the letter shows that Nintendo, Sony and Microsoft can play nicely together, which is not only promising for future collaboration, but probably necessary when the likes of Google with its Stadia streaming service is trying to push into the gaming world. µ
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