The article discusses the ongoing effects of tariffs on video gaming consoles, particularly focusing on how different manufacturers are affected based on their production locations. Nintendo has strategically diversified its production, with about half of its consoles made outside China, giving it an advantage. Microsoft has also moved production out of China, while Sony remains heavily reliant on Chinese manufacturing. Despite claims that tariffs may incentivize reshoring, experts doubt this will materialize, citing practical challenges. However, potential exemptions from the tariffs for gaming companies could provide relief.
Tariff effects might not be felt equally across console manufacturers, though. Analyst David Gibson noted last month that roughly half of Nintendo Switch consoles are currently produced outside of China.
Observers see this as unlikely. 'Completely reshoring technology manufacturing operations back to the United States is simply not practically or economically feasible given the scale and complexity of required resources.'
While Trump and others in his orbit argue that these tariffs will encourage companies to bring manufacturing back to the United States, the Consumer Technology Association argues against it.
There is one possible reprieve for the game industry as a whole. Sony, Microsoft, and Nintendo argued for an exemption from the previous tariffs, which may recur.
Collection
[
|
...
]