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Sony, Microsoft, & Nintendo Say Chinese Tariffs Will Hurt the Gaming Industry

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  • President Donald Trump proposed increasing tariffs from 10% to 25% on Chinese imports in May.
  • In response to that news, Sony, Microsoft, and Nintendo wrote a letter to the U.S. Trade Representative saying that the move would hurt video game consumers and workers in the industry.
  • Hundreds of companies and business have taken a similar stance on the tariffs, evening testifying against the proposed plan at a public hearing held by the U.S. Trade Representatives.

The Letter

Sony, Microsoft, and Nintendo, three of the biggest video game console manufacturers in the world, wrote a joint letter to the U.S. Trade Representative, arguing that the proposed tariffs on Chinese goods would negatively impact the gaming industry.

“As leading video game console manufacturers, we submit this separate submission to highlight the enormous impact and undue economic harm that proposed tariffs on video game consoles would have on the entire video game ecosystem,” the letter sent on June 17 reads.

Their response refers to a proposal from President Donald Trump that would increase tariffs from 10% to 25% on Chinese imports. All three companies make their game consoles in China, meaning they could be hit with the tariffs. They are asking to be removed from the long list of products that would be impacted by this policy.

The letter states that “over 96% of video game consoles imported into the United States were made in China,”  and says that 60% of Americans play video games daily. It also notes that in 2018, the video game industry brought in $43.4 billion in revenue to the U.S. However, a price increase from the tariffs would drive the cost of a console out of a price range that most American families can afford. 

The three rival companies also write about how the tariffs would not only impact video game consumers, but also those who work in the industry as well.  In 2018, video game publishers and developers employed over 65,000 workers at 2,700 different companies, according to Entertainment Software Association. The tariffs could put many of those jobs on the line. 

“The harm to the thousands of U.S.- based game and accessory developers who depend on console sales to generate demand for their products would be equally profound” the letter explains. 

It also includes a study from the economic group, Trade Partnership. Which shows, “even after accounting for new tariff revenue, the result is a net $350 million loss for the U.S. economy for each year the tariffs remain in effect, with the burden carried by U.S. consumers.”

While the companies did not mention what kind of increase an individual consumer may face, it is clear that these three rivals are worried about the tariffs. 

Other Companies 

Sony, Microsoft, and Nintendo are not the only ones concerned about the proposed tariffs. Apple has also spoken out and sent their own letter to the U.S. Trade Representative, also on June 17. 

“U.S. tariffs on Apple’s products would result in a reduction of Apple’s U.S. economic contribution,” the tech company wrote. 

Dell, HP, Intel, and Microsoft sent a letter that same day and in it they explain, “the tariffs will harm U.S. technology leaders, hindering their ability to innovate and compete in a global marketplace” 

Earlier in June, the Trump administration conducted public hearings about the proposal in Washington D.C. According to reports, over 300 companies showed to testify against the tariffs.    

The Proposed Tariff Plan

The tariff increase was first proposed at the beginning of May and was set to take effect by June 1, but was delayed. The Trump administration announced the new deadline would be June 15, but yet again it was pushed back. 

The president told reporters at a press conference on June 12 that he has “no deadline. Nobody can quite figure it out.” 

On Wednesday, before leaving for Japan for the G20 Summit, President Trump said that a trade deal with China could be possible. However, reports say China is insisting the tariffs be lifted. China’s president, Xi Jinping, is also at the G20 Summit and is set to meet with President Trump on Saturday.

See what others are saying: (Tech Crunch) (Kotaku) (Business Insider)

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Google Is Banning “Sugar Dating” Apps as Part of New Sexual Content Restrictions

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The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms.


Sugar Dating Crackdown

Google has announced a series of policy changes to its Android Play Store that include a ban on sugar dating apps starting September 1.

The company’s Play Store policies already prohibit apps that promote “services that may be interpreted as providing sexual acts in exchange for compensation.”

Now, it has updated its wording to specifically include “compensated dating or sexual arrangements where one participant is expected or implied to provide money, gifts or financial support to another participant (‘sugar dating’).”

The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms currently available for download.

Search results for “Sugar Daddy” on Google’s Play Store

What Prompted the Change?

The company didn’t explain why it’s going after sugar dating apps, but some reports have noted that the move comes amid crackdowns of online sex work following the introduction of the FOSTA-SESTA legislation in 2018, which was meant to curb sex trafficking.

That’s because FOSTA-SESTA created an exception to Section 230 that means website publishers can be held liable if third parties are found to be promoting prostitution, including consensual sex work, on their platforms.

It’s worth noting that just because the apps will no longer be available on the Play Store doesn’t mean the sugar dating platforms themselves are going anywhere. Sugar daters will still be able to access them through their web browsers, or they can just sideload their apps from other places.

Still, the change is likely going to make the use of these sites a little less convenient.

See what others are saying: (The Verge)(Engadget)(Tech Times)

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Activision Blizzard CEO Apologizes for “Tone Deaf” Response to Harassment Suit, Unsatisfied Employees Stage Walkout

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Organizers of a Wednesday walkout say they “will not return to silence” and “will not be placated by the same processes that led us to this point.”


CEO Apologizes

After a week of growing criticism against its workplace culture, the CEO of Activision Blizzard has finally apologized for how the company first responded to allegations of sexual harassment and assault in its offices.

“Our initial responses to the issues we face together, and to your concerns, were, quite frankly, tone deaf,” CEO Bobby Kotick said Tuesday in a letter to employees. “It is imperative that we acknowledge all perspectives and experiences and respect the feelings of those who have been mistreated in any way. I am sorry that we did not provide the right empathy and understanding.” 

In its initial response, Activision Blizzard denounced the disturbing allegations brought forth in a lawsuit by the California Department of Fair Employment and Housing (DFEH) as “irresponsible.” The company added that it came from “unaccountable State bureaucrats that are driving many of the State’s best businesses out of California.”

But many current and former employees soon disputed that claim. In fact, at the time, more than 2,500 had signed their name to an open letter condemning the company for its response, which they described as “abhorrent and insulting” to survivors. 

In his letter, Kotick promised employees that Blizzard will take “swift action to be the compassionate, caring company you came to work for.”

As part of a series of new policies, he said the company will now offer additional employee support and listening sessions, as well as potential personnel changes to leadership.

“Anyone found to have impeded the integrity of our processes for evaluating claims and imposing appropriate consequences will be terminated,” he added.

Kotick also said Blizzard will add “compliance resources” to ensure that leadership is adhering to diverse hiring directives.

Lastly, he promised that the company will remove “inappropriate” in-game content. In a similar statement on Tuesday, Blizzard’s World of Warcraft team said it’s actively working to remove “references that are not appropriate for our world,” though it didn’t specify what those references were. 

It now appears that many of the references being removed are of the game’s former Senior Creative Director, Alex Afrasiabi, who is cited in the lawsuit as someone who hit on and made unwanted advances at female employees. Moreover, the suit also directly accuses him of groping one woman.

“Afrasiabi was so known to engage in harassment of females that his suite” during company events “was nicknamed the “[Cosby] Suite” after alleged rapist Bill [Cosby],” the suit claims. 

Blizzard Walkout

Organizers of a company-wide employee walkout, which was announced Tuesday and occurred Wednesday, still argue that Kotick’s latest message doesn’t address their larger concerns.

Among those are “the end of forced arbitration for all employees,” “worker participation in oversight of hiring and promotion policies,” “the need for greater pay transparency to ensure equality,” and “employee selection of a third party to audit HR and other company processes.”

“We will not return to silence; we will not be placated by the same processes that led us to this point.”

Ahead of the walkout, Blizzard reportedly encouraged its own employees to attend, saying those workers would face no repercussions and “can have paid time off” during the demonstration, according to The Verge. 

See what others are saying: (The Verge) (Polygon) (CNBC)

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Frito-Lay Workers End Nearly Three-Week Strike After Securing Higher Wages and a Guaranteed Day Off

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Employees also negotiated an end to “suicide shifts,” which are two 12-hour shifts that are only eight hours apart. 


Strike Ends

Hundreds of Frito-Lay workers in Kansas have put an end to their nearly three-week strike over alleged mandatory overtime assignments that resulted in extremely long work weeks and so-called “suicide shifts.”

The term “suicide shift” refers to working two 12-hour shifts with only eight hours of rest in between. That can be especially hard on employees who claim to have worked up to 84 hours in a single week. For context, that’s 12 hours a day without a single day off. 

One of the reasons workers have found themselves taking on more hours and days at plants is because consumer snacking has increased during the pandemic — so much so that Frito Lay’s recent net growth has exceeded every single one of its targets. That’s why at one point, the striking workers asked consumers to boycott Frito-Lay products in a show of solidarity.

The strikes began July 5 and concluded on July 23 following an agreement reached by union leaders and PepsiCo., Frito-Lay’s parent company. Under that deal, all employees will see a 4% wage increase over the next two years. They’ll also be guaranteed at least one day off a week, and the company will no longer schedule workers with only eight hours off between shifts. 

Following the agreement, Anthony Shelton, the president of the union representing the workers, said that they’ve “shown the world that union working people can stand up against the largest food companies in the world and claim victory for themselves, their families and their communities.”

“We believe our approach to resolving this strike demonstrates how we listen to our employees, and when concerns are raised, they are taken seriously and addressed,” Frito-Lay said in a statement. “Looking ahead, we look forward to continuing to build on what we have accomplished together based on mutual trust and respect.”

The Long, Bitter Road to an Agreement

When the workers went on strike, they lobbed several very disturbing accusations against Frito-Lay. 

In fact, the workers were pushed so hard that according to one employee who wrote in the Topeka Capital-Journal, “When a co-worker collapsed and died, you had us move the body and put in another co-worker to keep the line going.”

While Frito-Lay dismissed this account as “entirely false,” other employees continued to protest conditions in the plants. Many even argued the 90-degree temperatures they had to stand in to protest outside were preferable to the 100-degree-plus temperatures and smokey conditions in the factories. 

During the strikes, PepsiCo. actively disputed that its employees are overworked, describing their claims as “grossly exaggerated” and saying, “Our records indicate 19 employees worked 84 hours in a given work week in 2021, with 16 of those as a result of employees volunteering for overtime and only 3 being required to work.” 

It also said an initial concession more than met the striking employees’ terms, but the union backing those workers disagreed, and further negotiations were held until the final deal was reached. 

See what others are saying: (The New York Times) (The Washington Post) (Business Insider)

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