Microsoft, Nintendo and Sony consider shifting production out of China
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Nikkei Asia Review report that leading computer and console manufacturers are looking at alternatives to production in China. This mass exodus is brought about by the U.S. and China's trade conflict in which the former imposed tariffs on the latter's imports into the country.
Microsoft, Nintendo and Sony could be looking at moving a substantial amount of manufacturing from China, especially for goods bound for the U.S. HP, Dell and Amazon are just a few of the other tech companies looking into this. Quanta Computer, Foxconn Technology and Inventec are reported to have already moved some production out of China to Taiwan, Mexico and the Czech Republic.
Consumers that purchase goods from the U.S. market could see an increase in costs, but China would take the brunt of the losses. Many factories will likely have to close, its economy will lose a sizeable amount of revenue and factory workers would have to seek new jobs.
China's increase in costs has also made things quite difficult. According to Darson Chiu, an economist specialized in trade at the Taiwan Institute of Economic Research, "China's hiked production costs have already led to a decline in global orders. Now, the uncertainties associated with the trade war are adding insult to injury."
Considering Microsoft and Sony plan to release their next generation consoles as early as 2020 and Nintendo could be working on a new Switch model, gamers could be hit hard. Expected costs were already on the high side before this development but now they could become even more expensive, making the entire game's industry take a hit.