As you may already know by now, President Donald Trump has imposed trade tariffs on goods from China worth over $250 billion. One of the items included in this total are video game consoles, and with a new hardware generation just around the corner, it seems like Microsoft and Sony doesn't want to make their new consoles more expensive than they need to be, and as a result of this, both are said to be looking at options away from China.
This news was reported by Games Industry, and it follows another report from a few weeks ago where it was revealed that Nintendo is also looking to do the same thing. Even if relations warm between China and the U.S., it sounds like the big three just don't think it's worth taking the risk of being stuck with hardware that costs more because of rising trade tariffs.
According to a quote from a supply chain executive who talked to Nikkei Asian Review (which we found in the same article on GI.biz), it might be almost a third of production that ends up moving:
"The industry consensus is to move an average of some 30% of production out of China depending on how important the US market is... Everyone needs to come up with a plan."
According to Nikkei Asian Review, Google and Amazon are also both looking to reduce hardware production in China. PC hardware companies and brands including Lenovo, Acer, and Asutek are reportedly "evaluating plans to shift" too.