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The Handelot Times
Markets

Why 3 console giants have decided to join and write a letter to Donald Trump

States and China constitutes a serious problem for the technological world, as it was clear with the chain reaction triggered by the ban of Huawei.

The Handelot Times Issue 14, August 2019 4 min read

The tightening of relations between the United

States and China constitutes a serious problem for the technological world, as it was clear with the chain reaction triggered by the ban of Huawei. In this article we want to talk about it again because of a letter signed by Microsoft, Sony and Nintendo, addressed to the US administration, which focuses the attention on the consequences for the videogame field and even more in detail on the console business.

Why the letter?

Practically speaking, Sony, Nintendo and Microsoft sent a joint letter to the Office of the United States Trade Representative in which they have requested an exemption from the tax for gaming consoles because it would have a heavy negative impact on the industry.

Translated: dear President Trump we want to be exempted from the duties you want to impose on products coming from China. The letter speaks of ‘the disproportionate damage caused by these tariffs to US consumers and businesses’ and it is explained that 96% of consoles imported into the United States are produced in China. Moreover, 25% increase in console prices could take them out of the purchasing power of many families.

The document

Within the document, we read that the three companies fully support a similar initiative carried out by the ESA (Entertainment Software Association) aimed at exempting a wide category of assets linked to the videogame sector. In addition to reiterating its support, Sony, Nintendo and Microsoft also put the negative impact on the console market in particular black and white, highlighting how 96% of those distributed in the US come from China.

The rest of this article is in the magazine Continue in issue 14

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