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.exe

Member
Oct 25, 2017
22,219
I'm sure a sternly worded letter will work with this administration.
 

Betty

Banned
Oct 25, 2017
17,604
With next gen and the forever rumoured Switch revisions you can bet none of these companies want to hike up console prices or make less money just because Trump is acting like a toddler.
 

bsigg

Member
Oct 25, 2017
22,542
That kind of slowdown can have effects that echo through the entire ecosystem, and it's not limited to Apple. Sony, Nintendo, and Microsoft joined together as game console manufacturers for a similar filing, worrying that tariffs will slow down sales across the US. Roughly 96 percent of consoles are made in China, often at razor-thin margins. "Given that retail margins on video game consoles are generally very tight," the companies wrote, "we see no possible reasonable scenario for retailers other than passing tariff costs down to consumers."

They were joined by a separate filing from ZeniMax, parent company of Bethesda, Arkane Software, and Machine Games, which argued that the tariffs would hurt the software side of gaming too. Fewer Americans buying consoles means fewer Americans playing games, pushing developers to focus more on overseas audiences. "For ZeniMax in particular, this would be especially harmful given that a majority of our global sales come from our console game sales here in the United States," the company wrote in its filing. Game development employs roughly 65,000 people in the US, which is more than durable manufacturing and coal mining combined. Facing intensely price-sensitive customers, the effect on those jobs could be unpredictable.

 

metsallica

One Winged Slayer
Member
Oct 27, 2017
11,693
I have the utmost confidence that this will be read, comprehended, and acted upon! Who's with me!
 

Tom Nook

Avenger
Oct 25, 2017
15,787
d1b5xob-d3eaf621-a569-4d30-90e4-bdef55bb1798.jpg
 

Astandahl

Member
Oct 28, 2017
9,009
This is another example that shows how our global economic system is not sustanaible at all in the long run.
 

Bosh

Member
Oct 26, 2017
2,226
They'll definitely eat the 25% if their current prices are based on consumer price acceptance.

Highly unlikely.

In my industry (which touches 2 others directly) we have already had a few large price increases with previous tariffs. They are not consumer items but are critical in day to day business operations. Not going to go into a specific number but an example would be we eat 30% and remaining 70% is passed on for increase.

Very likely the end consumer would see 4-8% increase (At max around 15ish% but that would be wild). That does not mean they mark it up directly in the console though. The big three could easily push these price increases into other areas such as Online play (ex.. PS+) or raise video game prices slightly (Ex. $65 MSRP instead of $60 MSRP in US). Then when the Tariffs are removed/lowered if consumers as a whole handle these slight increases to pay for online or standard video game they could remain like that forever.

Edit: Tariffs are most likely not a 1:1 increase for Company/Consumer, most of the items pass through a secondary,third source (Your average retail store) so Sony might take a slight hit, Walmart takes a slight hit and then finally consumer takes slight hit for example). Overall though at the end of the day its bad for the consumer
 

Piston

Member
Oct 25, 2017
11,157
I think a pretty sure way for Trump to lose 2020 is to collectively piss off video gamers in a way like this.
 

Complicated

Member
Oct 29, 2017
3,333
The peak of all this stupidity is that the production of these consoles will just move to factories in other countries owned by the same Chinese corporations Sony, Nintendo, and Microsoft are already doing business with.
 

kirby_fox

Member
Oct 29, 2017
5,733
Midwest USA
They'll definitely eat the 25% if their current prices are based on consumer price acceptance.

Not for next gen, they'll ride it out instead. It will also likely adjust price cuts for the current gen stuff and raise the price of things coming out. So if the Switch was going to see a price cut, with the Pro taking over as the more expensive model- they may instead not cut the price of the Switch and start with a higher price of the Pro to offset all of this. While other regions may see the price cuts.

This will likely also affect what games come out here physically and push towards the digital marketplace. I've no doubt that physical copies will see that price increase, while they start pushing everyone to a digital future and keep prices lower there.
 

BasilZero

Banned
Oct 25, 2017
36,343
Omni
Good luck

So if nothing changes , would this mean they would go elsewhere to produce consoles or it doesn't matter where they go
 

Dekuman

Member
Oct 27, 2017
19,026
I'll pay more for made in Japan consoles again. At least I'll know a genocidal government Isnt benefiting
 

Deleted member 42472

User requested account closure
Banned
Apr 21, 2018
729
Hell yeah. It will have no impact but it might at least make the gaming populace aware something is gong on

Also: Nintendo, Sony, and MS just made more work for the poor bastard whose job it is to tape back together all the papers Trump rips up (not joking, look it up)
 
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