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Sony, Microsoft and Nintendo sent letters to warn President Trump about the consequences of tax increases on players


Currently the US government is still considering imposing a 25% tax on gaming consoles and tabletop games (such as Dungeons & Dragons or Uno brothers) that import from China to the United States. In the midst of a hot trade war now, the G20 conference is about to take place but not many people are optimistic about what President Trump and Xi's president can reach consensus with. The game's big man must also give a warning to President Trump with a letter signed by both Sony, Microsoft and Nintendo:




“Economically, the game industry contributes a great deal to the US economy, with a remarkable annual growth rate. In 2017, game industry revenue in the US reached 36 billion USD and 43.4 billion USD in 2018, an increase of 20%. The gaming industry helps create more than 220,000 jobs. 99.7% of game companies are classified as small businesses and located throughout 50 states of the United States, developing multi-platform entertainment software, from PC to mobile, and even consoles which we produce, and we are an integral part of this industry. ”



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The game itself and the game console are not easy to create, so the profit is not high, so it is almost impossible to transfer the PS4 production line or Xbox One to the US or change the existing parts supply chain. at:

“In 2018, more than 96% of the consoles for gaming consoles are made in China. The supply chain of gaming machine components has been developed in China after many years of being invested by us and our partners. If this line is completely changed to the United States or to a third country, this supply chain will be severely affected, causing higher costs, sometimes surpassing the tax being considered, on products. The product is already profitable. Each machine is made up of dozens of complex components purchased from multiple sources and manufactured in many countries. A change in one link must also be carefully considered to minimize damage to product quality, reliability and safety during use. The new tax will have a big impact on our company and create additional costs that may affect the industry's sales. ”



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As for Nintendo, they have transferred several equipment manufacturing lines to Southeast Asia to avoid a 25% tax rate, but also determined that if the new tax was applied, it would cause the US economy itself to be damaged by 350 million dollars:

“Game is a core part of American entertainment. Two out of every three families have game players and 60% of Americans play games daily. The increase in the price of gaming equipment will make new gaming systems difficult to reach for the Americans themselves, who keep coming to the end of the year to be eager to buy gaming machines for entertainment. If the new tax is applied, consumers will have to spend an additional $ 840 million compared with the figure they should have paid to buy the new console. "



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You can read this letter specifically here. It seems that President Trump's commercial war is making many industries, not just the game industry, with American businesses feel seriously affected. In addition, American 5G network infrastructure components and equipment manufacturers can be included, but there are production lines in China, such as Cisco Systems.



P.W

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