The trade war between the two powers predicted strong tariffs on Chinese products, including the new consoles.
The price of next-generation consoles has not yet been announced. PlayStation 5 and Xbox Series X are planned for the end of the year, but the commercial war between the United States and China threatened to increase the cost of production, which would eventually end up affecting the consumer's pocket. However, the agreement reached between the two powers has managed to blur this scenario, something that can not be said by the producers of board games, which still settle in swampy terrain.
As Polygon publishes, in December 2019, China and the United States signed the “Phase One” of the trade agreement, which suspended indefinitely the tariffs that were intended to be charged on video game consoles, among other products. Before that date, President Donald Trump adopted a commercial confrontation strategy that he initiated during the 2016 election campaign. After being elected, he applied existing tariffs and created new ones, so that last summer they had already increased by 25% . In total, 160,000 million dollars associated with products from the Chinese market.
Alliance between video game companies
If tariffs were applied, the production costs of PlayStation 5 and Xbox Series X would have skyrocketed. However, videogames companies did not sit idly by. In June 2019, Sony, Nintendo and Microsoft signed a letter to the United States Office of Commerce Representatives (USTR) to denounce the imposition of tariffs. They argued that the cost overrun, estimated at 840 million dollars, would have a direct impact on US customers. This situation would mean that many users could not afford the consoles.
"USTR has suspended console tariffs until further notice," the Entertainment Software Association (ESA) said in an email sent to Polygon. “We are encouraging the Administration to suspend the implementation of tariffs on video game consoles and controls. These tariffs would have a significant impact on our industry, which represents a surplus for the American economy. Tariffs will erode innovation, eliminate job opportunities for American employees and increase the price to consumers, ”they argue.
The board games industry, in limbo
The presence of tariffs on Chinese raw materials collides head-on against the manufacturers of board games, which have grown exponentially thanks to micromanagement campaigns such as Kickstarter. "The United States maintains 25% of tariffs on Chinese imports worth $ 250 billion, which includes raw materials (needed to make board games)," said John Stacey, executive director of the Board Game Manufacturers Association (SPECTRUM). "We are working to push this back and to prevent the imposition of tariffs on toys and games."
Stacey assures Polygon that unpredictable things happen during election campaigns. "We used to call it 'the dumb era' because you never know what will happen" in election periods. The US president will try to revalidate his mandate at the polls, while the Democratic party, which has not yet held the primaries, seeks to snatch the presidency from Donald Trump. Bernie Sanders is the favorite to face Donald Trump.
