Hello! Welcome back to your Monday morning mini-industry briefly. I hope you had a lovely weekend. And if you’re joining us in San Francisco for GDC, do make sure to say hello.
This week, Nintendo sues the US Government over tariffs, Microsoft gets ahead of GDC by announcing its Xbox PC. And mobile developers “shrug” at Epic’s deal with Google.
Plus, VR giant nDreams announces cuts, Humble Bundle’s publishing library has a new home, Build A Rocket Boy is convinced someone is out to get them, Sony is reportedly scaling back on PC, and it’s the end for Highguard.
Let’s dive in.
Nintendo sues US Government over tariffs
In Brief: Nintendo of America is suing the United States government over the tariffs it introduced last year. The firm is seeking a refund on the previously imposed tariffs that were struck down by the Supreme Court last month.
What You Need To Know:
The tariffs introduced by the US Government last year impacted the launch of Nintendo Switch 2. Nintendo delayed taking pre-orders as it weighed up the potential cost implications of the various levies.
The tariffs imposed by the US included a 24% tariff on Japan, where Nintendo is based, and a 46% tariff on Vietnam, where the Switch 2 was partially manufactured. There were also various tariffs imposed on China, where Nintendo products are built.
The tariffs were introduced under the International Emergency Economic Powers Act (IEEPA) but they were struck down by the US Supreme Court last month.
On March 5 (last week), the US Court of International Trade ordered Customs and Border Protection to issue refunds on these levies.
Over 1,000 companies are suing for a refund, including FedEx and Costco.
Since the decision, the US Government has vowed to impose a new 15% tariff on many global imports. It has already introduced a 10% tariff.
Xbox announces Project Helix. A new console that plays Xbox and PC games
In Brief: The next Xbox machine is called Project Helix. It will play PC games as well as Xbox titles and ‘lead in performance,’ says CEO Asha Sharma. The firm will be talking to developers at GDC about the new device.
What You Need To Know:
Xbox has been more closely aligning its Windows and Xbox businesses. Last year’s ROG Xbox Ally handheld features an Xbox interface, but was actually a PC device that included access to Windows, Steam and others.
Xbox has been releasing all its first-party titles on PC, a strategy that stretches back to 2016.
Reports suggest the new Xbox will give users the ability to access their Steam libraries, which would open up the platform to alternative digital stores.
Project Helix will follow a disappointing generation for Xbox Series S and X. Microsoft has continued to lose market share to PlayStation and Nintendo in the console space.
Typically, new consoles emerge every seven years. The current console generation is six years old. However, there are concerns around rising component costs that might impact the timings of the next iteration of console hardware.
My Take:
Yes, another week talking about Xbox. What can I say? They’re great at leading the conversation.
Project Helix isn’t too much of a surprise. It’s been long reported that the next Xbox will bring the PC and console ecosystems together in one. The question is, will it make any difference at all?
