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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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TikTok to Require Labels on Manipulated Media, Ban Deepfakes of Children

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The social media platform says it wants to embrace the creativity AI can offer while being cautious of the “societal and individual risks” that come with it.


TikTok is rolling out a slew of limitations regarding synthetic deepfake videos, including a ban on deepfake content of children.

In an update on Tuesday, the social media platform said it wants welcome “the creativity that new artificial intelligence and other digital technologies may unlock” while also being careful of the “societal and individual risks” that come with it. To mitigate those risks, TikTok will require users to label manipulated media depicting “realistic scenes.” Users can do so in stickers, captions, or other means that make it clear the video is “synthetic,” “fake,” “not real,” or “altered.”

On top of that, there are new restrictions about who can be the subject of these manipulated videos. TikTok will not allow deepfake media that shows the likeness of a “young person” or any private person, including adults. It is also barring deepfakes that depict adult public figures giving political or commercial endorsements, as well as deepfakes that violate one of the platform’s other rules.

“While we provide more latitude for public figures, we do not want them to be the subject of abuse, or for people to be misled about political or financial issues,” the company’s updated guidelines say. 

As TikTok’s policies previously stated, synthetic media that has been edited to mislead audiences about real-world events is also not allowed on the platform. 

As far as what kind of deepfake media is allowed on TikTok, the company said videos showing adult public figures in “certain contexts, including artistic and educational content,” get the green light. This can include a video of a celebrity doing a TikTok dance, or a historical figure being depicted in a history lesson. 

The rules will be enforced starting April 21. Between now and then, TikTok says it will be training its moderators to better implement the guidelines.

See what others are saying: (The Verge) (The Associated Press) (TechCrunch)

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Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades

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Adidas has labeled 2023 a “transition year” for the company. 


Yeezy Surplus 

Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years. 

Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.

According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes. 

On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.

“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press. 

However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.

The Numbers 

Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million. 

If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.

Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.

As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval. 

Adidas has labeled 2023 a “transition year” for the company. 

“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”

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

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Elon Musk Bashes Disabled Ex-Twitter Employee, Gets Blowback

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After Musk claimed the former employee “did no actual work,” the staffer calmly directed passive-aggressive insults right back at the billionaire.


Excuse Me, Do I Still Work Here?

Elon Musk brawled online with a former Twitter employee who didn’t know whether he was fired Tuesday, accusing the staffer of exploiting his disability.

Haraldur “Halli” Thorleifsson, who has muscular dystrophy, joined Twitter in 2021 after it acquired the creative agency he founded: Ueno.

He said on Twitter that he was unable to confirm whether he was still a Twitter employee nine days after being locked out of his work computer, despite reaching out to the head of HR and Musk himself through email.

At the time, Twitter had laid off at least 200 workers, or some 10% of its remaining workforce.

In search of an answer, Thorleifsson tweeted at Musk, who responded with the question: “What work have you been doing?”

After being given permission by Musk to break confidentiality, Thorleifsson listed several of his accomplishments, including leading “design crits to help level up design across the company.”

“Level up from what design to what? Pics or it didn’t happen,” Musk replied.

We haven’t hired design roles in 4 months. What changes did you make to help with the youths?”

Thorleifsson reminded Musk that he couldn’t access any pictures because he was locked out of his work computer.

Musk stopped replying to the tweets, but hours later he returned to the platform to lob invective at his former employee.

Musk Vs. Halli

“The reality is that this guy (who is independently wealthy) did no actual work, claimed as his excuse that he had a disability that prevented him from typing, yet was simultaneously tweeting up a storm,” Musk tweeted, apparently referring to Thorleifsson. “Can’t say I have a lot of respect for that.”

“But was he fired? No, you can’t be fired if you weren’t working in the first place,” he added.

In a later Twitter thread, Thorleifsson said he could type for one or two hours at a time before his hands cramped, but that in pre-Musk Twitter, that wasn’t a problem because he was a senior director.

He added that despite his crippling disability, he worked hard for years to build Ueno.

“We grew fast and made money,” he said. “I think that’s what you are referring to when you say independently wealthy? That I independently made my money, as opposed to say, inherited an emerald mine.”

Thorleifsson made several more passive-aggressive jabs at Musk.

“I joined at a time when the company was growing fast,” he wrote. “You kind of did the opposite. The company had a fair amount of issues, but then again, most bigger companies do. Or even small companies, like Twitter today.”

Thorleifsson said that immediately following his back-and-forth with Musk, Twitter’s head of HR confirmed that he had indeed been fired from the company.

See what others are saying: (Business Insider) (CNN) (Yahoo)

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