https://www.escapistmagazine.com/v2...oft-and-nintendo-unite-against-china-tariffs/
So Microsoft, Nintendo and Sony are asking to the Administration for video game consoles to not be subject of the new tariffs.
Letter to the Representative: https://www.regulations.gov/document?D=USTR-2019-0004-1869
Basically they say that the benefits for such tariffs aren't worth the damage they'll cause (hurt consumers, video game developers, retailers and console manufacturers; put thousands of U.S. jobs at risk; and stifle innovation within and outside the industry).
So Microsoft, Nintendo and Sony are asking to the Administration for video game consoles to not be subject of the new tariffs.
Letter to the Representative: https://www.regulations.gov/document?D=USTR-2019-0004-1869
Basically they say that the benefits for such tariffs aren't worth the damage they'll cause (hurt consumers, video game developers, retailers and console manufacturers; put thousands of U.S. jobs at risk; and stifle innovation within and outside the industry).
I expect all the tech industry is going to be affected by the new tariffs (and I don't think entertainment sector will be spared). American consumers are going to get less value for their money in the near future, and they better get used to it.Imposing Tariffs on Video Game Consoles Would Not Be "Practicable or Effective to Obtain the Elimination" of China's Problematic IP Practices
Although we appreciate the Administration's goal of strengthening the protection of IP in China, video game consoles are not the focus of the Chinese practices targeted by this investigation. Video game consoles are not priorities in any Chinese industrial policies, e.g. Made in China 2025. Indeed, Chinese-developed and branded video game consoles are virtually non-existent; one video game console that launched in 2016 has not been well received by the market. Moreover, because margins are tight due to the nature of our business model (as explained above), incentives to steal IP to make counterfeit consoles are exceptionally weak. Video game consoles are also relatively complex types of equipment, so the amount of effort and cost required to manufacture infringing or illegitimate products would not be justified by potential returns.
We appreciate the Administration's consideration of this request that tariffs not be applied on HTSUS subheading 9504.50.00, covering video game consoles, and therefore that this subheading not be included in the final fourth list of products subject to Section 301 tariffs.