Trump’s Tariffs Could Be the Final Boss for Affordable Gaming
Economic and business leaders have been adjusting to President Donald Trump’s tariffs at a breakneck pace, making it hard for Americans to track how their lifestyle may change under Trump’s economic vision. One lesser-discussed area: video games.
Two-thirds of the nation play video games at least one hour per week, and almost 80 percent of U.S. households own at least one gaming device. These games aren’t just an adolescent pursuit either—the average player is 36 years old. Broad tariffs—like the 10 percent tax the Trump administration imposed on China—could produce a price increase of 40 percent for consoles and a 57 percent decrease in purchases.
This has serious implications beyond consumers’ access to video games. Depressed console sales could affect more than 350,000 American jobs, approximately $66 billion in America’s gross domestic product, and billions of dollars in taxes for federal and local governments.
Luckily, some in the industry prepared for a second Trump administration. In 2019, Nintendo planned to shift its Switch gaming console production to Vietnam to avoid Trump’s trade war with China. Six years later, the Japanese company’s diversified supply chain is better equipped to handle Trump’s second term. Similarly, Microsoft has been shifting its manufacturing operations beyond China for years.
But the tariffs affecting gaming hardware will still
Article from Reason.com
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