Trade agreement between US and China means no price rise for next-gen consoles

midian182

Posts: 8,149   +96
Staff member
Why it matters: The trade agreement signed by the US and China last month has seen both video game fans and the industry breathe a sigh of relief, as it will prevent an increase in price for the PS5 and Xbox Series X.

The “Phase One” agreement put a hold on Donald Trump’s proposed 25 percent tariffs on $160 billion worth of goods made in China, which included consoles. In all likelihood, the tariffs would have made the next-gen machines from Microsoft and Sony more expensive due to them being manufactured in the country.

In June last year, the threat posed by the tariffs resulted in Microsoft, Sony, and Nintendo joining forces and jointly writing an open letter to the office of the United States Trade Representative. The gaming giants said the extra import costs would cause “disproportionate” harm to the industry.

A few months later, a Sony executive reiterated that if the tariffs went through, the company may be forced to pass the costs onto consumers.

But the signing of the Phase One agreement appears to have put fears of a price increase to rest. In a statement to Polygon, the Entertainment Software Association said: “We are encouraged that the Administration suspended the implementation of tariffs on video game consoles and controllers. These tariffs would have significant implications for our industry, which boasts a trade surplus for the American economy. Tariffs will erode innovation, decrease job opportunities for American workers, and increase prices for consumers.”

It's not just consoles that have been spared a price increase. The agreement has also stopped tariffs on some of Apple’s most popular products, including iPhones, iPads, and MacBooks, which could have seen the company increase its prices.

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Uncle Al

Posts: 9,079   +8,109
Well, considering how all the other negotiations have gone you better check to make sure it's still in effect the minute before they run your card through the ATM ......
 

wiyosaya

Posts: 7,958   +7,001
Honestly, though I am sure many will disagree with me and trash me for it, who gives a crap about next-gen consoles? This sounds like an attempt to sway the more tech savvy, or perhaps addicted, voters.

I'll say this: I work in an industry that supplies equipment to transportation manufacturers - which is hurting world-wide ATM for a myriad of reasons which include trade wars and lack of investment into new machinery for production. At least some people in this industry feel that this will do absolutely nothing for any company anywhere that manufacturers transportation related equipment.
Get over yourself. And stop trying to do the subtle, bs holier-than-thou thing of "I'm not going to just outright say I'm a Trump supporter, instead I'll point out that you should 'respect the office'"
A bumper sticker I saw the other day puts it succinctly: Pro American, Anti Trump.
 

Hexic

Posts: 1,245   +1,952
TechSpot Elite
Get over yourself. And stop trying to do the subtle, bs holier-than-thou thing of "I'm not going to just outright say I'm a Trump supporter, instead I'll point out that you should 'respect the office'"

How about acting like an adult and respecting the office regardless of your beliefs? The fact that you take the statement as "holier-than-thou" shows your view is the problem.

I don't like Trump; whether you choose to believe that is your own problem. You among others have clearly forgotten the meaning of true respect. You can still show their position respect while still disagreeing with an individual and their beliefs/policies.

No wonder why everything these days is so polarized, because nobody recognizes that anymore. But keep on keeping on, that bandwagon isn't getting any lighter.
 

Evernessince

Posts: 5,469   +6,157
Since when has it been respectful to stop using the term "President" when you're referring to POTUS.

Maybe I'm just old school.

A President is supposed to represent the people and look out for their interests. Trump only looks out for himself and constantly lies to his base to keep the money flowing. He is not a president, he's the same conman he's always been.
 

Lounds

Posts: 1,180   +1,080
Since when has it been respectful to stop using the term "President" when you're referring to POTUS.

Maybe I'm just old school.
Your head of state is a king or queen I don't think it's that disrespectful to use their full name.
 

yRaz

Posts: 4,618   +5,564
I'm glad that we value videogames more than building things without child slave labor. Am I the only one that has a moral objection to commiting human rights violations in order to save money?
 

Danny101

Posts: 2,026   +838
I'm glad that we value videogames more than building things without child slave labor. Am I the only one that has a moral objection to commiting human rights violations in order to save money?
China is a slave state. It isn't a stretch to say that trade, as it works today, has made that possible and christened it. It's funny that with all the trade and human rights organizations and economic forums no one has taken China and countries like them to task about it. So IMO it's all bunk with all the so-called social justice talks and speeches. Put your money/sacrifice where your mouth is if really want a better world that respects human freedom and dignity.

At any rate, there's still 20 years of game catalog that I've have yet to experience. The current level of realism is sufficient. Let's break China. The time is now.