Sony, Microsoft and Nintendo ask US to waive import tax on game consoles

Sony, Microsoft and Nintendo have jointly sent a letter to the US government asking it to waive the impending import tax on game consoles. That would cause a price increase of consoles for American buyers.

Console makers sell the devices for cost price or just above. For example, they persuade gamers to purchase the hardware and thus invest in the ecosystem of games, the console makers say in the letter. As a result, the 25 percent import duty would lead to a higher price for consumers.

All three companies have many consoles assembled in China; about 96 percent of consoles sold in the US come from China. Moving that production to another country is not possible quickly, the companies argue. The companies are also not afraid of intellectual property theft, because counterfeiting the console would not be profitable.

The US government is imposing the import duty on goods from China as a means of pressure on that country because of the trade conflict. This should make it less attractive for companies to have goods produced in China.

According to the console makers, the import tax has a negative effect on the American market. For example, many game makers in the US depend on good console sales and many families can no longer buy a console thanks to a price increase.

The US government has previously implemented import duties, but then it concerned a limited set of products. This new series also includes many consumer products, including smartphones and tablets in addition to game consoles. Apple, with iPhone and iPad market leader in those areas in the US, has already asked the US government to waive the import tax. The levies go into effect this week.