Microsoft and Sony reportedly scaling back console production in China

President Trump's trade war causing further disruption in tech sector manufacturing

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.

PC brands such as Lenovo, Acer, and Asutek are also reportedly "evaluating plans to shift."

It was hoped that the G20 summit earlier this month would help ease tensions between China and the US.

However, speaking with Fortune, economists have suggested the truce struck between president Trump and Chinese president for life Xi Jinping in Osaka over the weekend is just the "the eye of the storm", and that the trade dispute is "unlikely to end anytime soon."

China is currently the largest PC and smartphone manufacturer in the world. However, president Trump has imposed trade tariffs on imports worth over $250 billion, putting financial pressure on tech companies to reconsider its manufacturing options.

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."

More stories

Xbox experimenting with how to pay studios for Game Pass "because we don't think we have it figured out"

Phil Spencer also decries console fan tribalism as "one of the worst things about our industry"

By James Batchelor

The $70 AAA price point -- it's about time | Opinion

No consumer is going to be enthused about a price rise, but 15 years of $60 has done no favours to either gamers or creators

By Rob Fahey

Latest comments (2)

David Reeves Consultant A year ago
Foxconn are Taiwanese, it's going to be complicated......
0Sign inorRegisterto rate and reply
David Reeves Consultant A year ago
Microsoft do not have as many options as SONY who have Hardware factories, Mexico is an option as well, complicated as the Next Gen comes on line. 'Don't get cocky, it' s gonna get rocky '.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.