The Trump administration is considering another round of semiconductor tariffs that would target gaming hardware, including the Nintendo Switch 2, PlayStation 5, and Xbox Series X. Console prices have already surged without new measures: the PS5 now costs $150 more than at launch, and the Xbox Series X has increased by $300. This threat comes as the sector already faces RAM shortages driven by strong demand for AI infrastructure. Sony, Microsoft, and Nintendo all manufacture their consoles in Asia, leaving them fully exposed to these potential new taxes. The stated goal of reshoring semiconductor production to the United States would take several years before meaningfully reducing import dependency.
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