After the US President Donald Trump declared a tariff war on many nations, the entire world economy is on the brink of collapse. Many European nations suffered a massive hit in trading. The trade war was like a nuclear bomb for many countries that enjoyed zero taxes doing business in the US. The gaming industry is not exempt from the tariff war, as it suffered a huge blow with an increase in the prices of games and consoles. Many experts warned it could end the gaming industry if necessary action is not taken immediately.
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PC's exempted but not Gaming Consoles
After several warnings given to the US government regarding the consequences of the tariffs, they have now agreed to give some exemptions. PC’s and smartphones will be exempted from the tariffs. Unfortunately, the gaming consoles that gamers love the most are not exempt and remain within tariffs.
This could not only affect the price of the upcoming Nintendo Switch 2 console, but it will also lead to a surge in the prices of PlayStation and XBOX as most of their parts are procured from outside the US. Consoles will be heavily affected, and gamers will need to pay more. Nintendo will be the most affected as its major revenue comes from the US market. Most people in the US love Nintendo devices, and with the new tariffs coming into play, they will be affected a lot.
The majority of the Nintendo Switch 2 devices are produced in Vietnam, and they will now be one of the highest taxpayers. The company is now shifting to the US for Switch 2 manufacturing, and this will help it reduce costs. But still, they have manufacturing facilities in China and Vietnam, which will cause them a lot of trouble selling their devices in the US. Experts are warning that this US trade war could lead to many countries avoiding US products, especially China.
Apple iPhones are the most popular ones in the US, and after this trade war, many Chinese people on their social media are saying that they will not use any US products hereafter. It could also hit the gaming industry as the majority of the Asian gamers play on Steam against US players. The revenue from the online gaming industry is massive, and if the war continues, then the industry will dive to a new low.
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