The impending tariffs imposed on China by President Donald Trump have been delayed for certain products, which now includes video game consoles. The delay of these tariffs means that the 2019 holiday season should be unaffected by the impending increase in shipping costs.
There is currently a trade war going on between China and the United States of America, which has resulted in proposed tariffs on goods from China that has included video game consoles, as they are primarily produced in that country. Microsoft, Nintendo, and Sony recently crossed party lines and banded together to oppose the tariffs, arguing that they would damage the growing video game industry.
It seems that the video game market has been given a temporary reprieve, as the Office of the United States Trade Representative website is reporting that the tariffs will be delayed for certain products until December 15th. The rest of the proposed tariffs will go into effect on September 1st. Video game consoles have been listed as one of the products that will be exempt from these tariffs until December 15th, which means that the 2019 holiday season shouldn't be affected.
The 2019 holiday season might be saved, but there is the lingering question of next year. Microsoft has revealed that the Xbox Scarlett will be released during the 2020 holiday season and the PlayStation 5 will likely be released at the same time. If the tariffs affect video game consoles during that period of time, then the next generation of consoles could be exorbitantly expensive, to the point where their sales will suffer.
The holiday season is the time of the year when most video game purchases are made, especially in relation to consoles, which is why the winter months are so stacked with releases. The video game console industry has been given a temporary reprieve, but the crucial 2020 holiday season is still at risk by future action as part of the trade war that is currently going on between China and the United States of America.