Sony, Microsoft and Nintendo have sent and released a join letter to the Trump Administration, as the three companies voice their disapproval over proposed tariffs that would target the three companies.

Joint Letter to the Trump Administration

In a letter to the United States Trade Representative (dated on June 17, 2019), the three companies joined together to voice their disapproval of proposed tariffs that would target China due to their policies regarding intellectual property. The three companies stated in the letter, “While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals.”

This move would have a huge impact on the video game industry, as these tariffs, according to the joint letter, would affect virtually all the consoles imported into the United States. According to Trade Partnership Worldwide, 96% of the consoles imported into the U.S. were from China in 2018.

The tariffs, according to Sony, Microsoft and Nintendo, would increase the prices of video games consoles by 25%. Because of this, many individuals and families would be unable to afford video game consoles.

In addition, the companies argues that the increase in prices would lead to lower game sales and layoffs. “Console game development is already a highly competitive space; when game sales are depressed or games are canceled, major layoffs routinely result.”

Sony, Microsoft and Nintendo concluded the letter by asking the Trump Administration to exempt the video game industry from the proposed tariffs, due to the massive effects it would have on video game companies.

You can read the whole letter from the three companies, as well as the document from the U.S. Trade Representative outlining the tariffs here and here.

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