As far as the video game consoles industry is concern, The top three major players i.e Microsoft, Nintendo and Sony reacted and send warning to U.S government on the cause of its attempt to increase the tariffs on the gaming industry.
U.S government allowed public to post their opinion on the its proposal of a 25% increment of $300 billion in tariffs put on all goods manufactured in China following an open letter released on June 17 sent to the representative of the U.S government.
Others consumer electronics like TV’s, Smartphones, video game consoles manufactured by Microsoft Xbox One, Nintendo Switch and Sony Playstation 4. These three company explain furthers in the open letter and make it clear that Video games are important and has become one of the core American Entertainment Culture.
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According to 2015 Essential Facts About the Computer and Video Game Industry, Explicitly stated that 42% of American plays video games i.e more than 3 hours per week. It furthers explain that two or three households own at least one video games player. The rate at which every american play video games daily will soon rise up to 60% and above.
Impacts Of Tarrifs On American Economy And Video Games Consoles
The three companies explains further in the open letter sent to U.S government and claimed that the cost increment of 25% tariff will make it new release video game consoles unavailable in american market as we approach to the end of year holiday. The consumers would likely to pay $840 million for consoles despite tariffs.
It also reported that more than 96% of all the game consoles in the America in last year were produced in China. given the belief firmly established and already tight side of such productions. any adjustment in this action would cause notable increased price of the products, which would directly put on to the shoulders of the american consumers.
The letter goes on to and claim that the taxation changes would cost high-value, Jobs at risk and obstruct innovation in gamers industries. And later would definitely caused negative impact on the overall American economy.