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Posted in: Games, Video Games | Tagged: Entertainment Software Association, ESA, gaming, president trump, tariffs, trump
ESA Issues Statement About Tariff Impact on Video Games
While not published by the source, the Entertainment Software Association (ESA) has issued a statement about tariff impacts on gaming
Article Summary
- ESA warns tariffs will raise costs for video game electronics.
- Majority of gaming parts are made in China, facing price hikes.
- ESA urges government to consult with private sector on tariffs.
- Tariffs could stem from broader political deals and agendas.
The Entertainment Software Association (ESA) has issued a statement to a media outlet regarding the impact the upcoming tariffs will have on the video game industry. It's no secret that the incoming extremely unnecessary tariffs being levied against Canada, Mexico, and China are going to impact our way of life, as we'll soon be paying more for goods and services provided by those countries. But when it comes to China, that's where gamers are going to get hit hard, as the majority of parts for electronics are made in China. This means everything from cell phones to game consoles to simple computer parts will soon cost us more than they should, because companies who buy these parts will pass the cost onto the consumer.
If you're looking to buy, let's say, a storage device for $30, and suddenly it now costs $45, it's because the company who bought that from a Chinese manufacturer to sell now has to make their money back on the increased cost brought on by the tariff. And they're not taking it on the chin; they're going to get their money back through YOU. This is why we usually don't do tariffs unless it's absolutely necessary, which this round was not.
As part of the commentary about tariffs, the ESA sent a quote to Kotaku Senior Reporter Ethan Gach, who decided to post the quote on his Twitter/X profile. The statement, which you see here, calls on the current administration to "consult with the private sector" to avoid causing "significant harm." He doesn't cite a source from the ESA, so this could be a blanket statement from the organization. No word yet as to why Kotaku hasn't written about it yet, as they've basically let other media outlets get first dibs on it, which seems like a very foolish thing for them as an outlet to do.
This morning, the Associated Press reported that President Trump paused the tariffs on Mexico for a month as Mexico's president agreed to send 10,000 troops to the border. One would naturally assume that a similar play is being offered to Canada, while the China move has bigger implications. We'll keep an eye on this and see how things take place.
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