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[IbizaPocholo]

Microsoft and Sony reportedly scaling back console production in China

Microsoft and Sony are reportedly looking to reduce console production in China amid the ongoing trade war waged by US …

www.gamesindustry.biz

Microsoft and Sony are reportedly looking to reduce console production in China amid the ongoing trade war waged by US president Donald Trump.

As reported by Nikkei Asian Review, sources close to the issue claim multiple tech giants such as Google and Amazon, are looking to scale back their game tech and smart speaker production in China.

The news comes just weeks after it was reported Nintendo was partially pulling Switch production from China.

Speaking with Nikkei Asian Review, one supply chain executive said:"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."

 

[ArabianPrynce]

Hopefully they move to Korea with Samsung and get that 7nm euv plz lord lol

 

[ethomaz]

But it is the end of generation... Sony and Microsoft will scale back of course.

We will only see how that Trump action will affect MS and Sony with the next generation that will probably not be produced in China.

 

[FranXico]

 

[DunDunDunpachi]

Diversifying production sources makes sense.

For years, all these tech companies have been fighting over the same pool of NAND and DRAM to put into their devices. Why? Because they're all buying it from China.

 

[Azula]

I know this is gonna get political backlash towards Trump. I’m not speaking politically one way or another. But doesn’t China raise the cost of some of our property being sold there? I mean prior to Trump coming into office. Could have sworn like our cars cost way more then their cars, so they don’t compete over there. And on top of that, China has a long history of breaking economic agreements (such as their mass property theft).

Plus, aren’t working conditions pretty questionable over there in some industries? Like the reason its so cheap to make parts there, is because of cheap labor? I could be 100% wrong tho. I’m open to hearing people out. I just feel like its strange how so many companies do business there, and some are okay with that, even though China does things completely against their progressive ideology.

As others have said, at the very least, it makes sense to diversify where you are making your stuff. Regardless of what is going on politically between two powers.

EDIT: made some changes, because I don’t know enough factually. Genuinely curious.

 

[MayauMiao]

Now if only Sony could move their PlayStation HQ back to Japan..

 

[FranXico]

Now if only Sony could move their PlayStation HQ back to Japan..

Amen.

 

[Mattyp]

I know this is gonna get political backlash towards Trump. I’m not speaking politically one way or another. But doesn’t China raise the cost of some of our property being sold there? I mean prior to Trump coming into office. Could have sworn like our cars cost way more then their cars, so they don’t compete over there. And on top of that, China has a long history of breaking economic agreements (such as their mass property theft).

Plus, aren’t working conditions pretty questionable over there in some industries? Like the reason its so cheap to make parts there, is because of cheap labor? I could be 100% wrong tho. I’m open to hearing people out. I just feel like its strange how so many companies do business there, and some are okay with that, even though China does things completely against their progressive ideology.

As others have said, at the very least, it makes sense to diversify where you are making your stuff. Regardless of what is going on politically between two powers.

EDIT: made some changes, because I don’t know enough factually. Genuinely curious.

Any U.S made and produced goods get taxed at a much higher rate in China then Chinese goods do in the U.S, this is Trumps entire point. It should be equal between the countries for a trade deal. One country shouldn't be better off then the other it should be equal footing when a trade deal is done. But we'll leave that there before this turns into an Orange man bad thread.

Cheap labor conditions are an issue but it's an issue where ever you want to produce these goods for a cheap price. I doubt Vietnam or India have better worker laws then China..

These companies should be prioritising automation for their products, we'll get there one day. But when the robots cost the same price anywhere in the world your much better off setting them up in your home market and then having your product loaded straight onto your driveless Tesla trucks. You could have entire warehouses and product lines run by a skeleton crew of a few maintenance workers.