Trump Tarriffs on XBOX, PLAYSTATION, and NINTENDO | Games ReCAP Episode 012

Oh what's up everybody welcome to another episode of games recap good morning everybody glad to be here larry charles here 1/2 the team bringing you this morning show of the half to my right mr. brain of fam yes of course if you're joining us live you already know that we are alive on Twitch every day 10 a.m. PST and check out later if you do miss any part of this or want to catch up to tomorrow you can go to our youtube calm or slash boot camps to also check this out yep yes and people have been asking is like we're gonna give this an audio farm well you know we're building up to that if you want to check us out on any podcasts go to our patreon calm as you can see yeah yeah and if you are listening this on podcast located yes

so we're be before we go into this today's topic it's gonna be very singular we do want to congratulate anybody that has made it into the business and my block and myself know I think the camera was auto focusing on your glass yeah so I'm gonna pull it back there we go get some fun we're gonna switch through that camera and figure out that oughta cuz it is annoying that he keeps good refocusing in a few seconds but uh let's talk about today's topic Larry are you ready manager who's up to the BET who's up to the plate swinging the bat first Trump all right just sit off Karen let's not get political it's just funny it ain't political I know I know I don't care if you four against Trump but the tariffs itself is not right now it is kind of point pointing towards two consoles yeah right but that it's been something raised with anything import from China when it comes to technology

right your iPhones or any any of that sort a lot of the microchips or like internal components yes required to make some of these things that even if we make it domestically because of that dependent yeah there's gonna be a tax increase or there's gonna be a tax on that thing getting me yes and I remember David she felt kind of making a joke about this saying it's like do we really need to do you want to put phones together is like I don't want my phone to be $2,000 it's keep it over there and so I I kind of on the fence with this I'm not exactly like completely on Sony Microsoft and Nintendo side saying like yeah man what are you guys doing you're gonna increase the the parts over here because in the long term it is true I do see it on the other side is like if everything is being made in China imported and what are the ramifications of that like no there's no skills it is a certain type of technology and skill set to understand how these things are

put together yes anybody of that age group that would be working on those factories howhow is your phone being made they all I have no idea and to be honest if you go ask anybody random in China they probably don't know but they have a better understanding because maybe their relative or someone is working in those factories that and everything well the thing about me when I think about this is like who are you really trying to please so that when you say that go I'm keeping jobs in America it's like alright so you're gonna bring let's let's just use the iPhone example so you're gonna bring iPhone manufacturing production internally to America domestically right or you're gonna because of tariffs forced Apple let's this is all hypothetical but Apple is now forced to do that in in country domestically and so let's go with Dave Chappelle saying Oh $2,000 for your iPhone so the trade-off is we've created about 3,000 jobs yeah right to make the new iPhone internally in America and say like oh we've you know homegrown to then make the price of the phone double for

everyone in America and worldwide who wants to buy it right so like is the two thousand jobs worth every single person now paying an extra thousand dollars who does want to buy an iPhone that's the way that I look at that the economics of that and so I can clearly see why consumers would be like hell no especially the companies that are you know trying to make this consumer based product because they know that like okay adding in that levying that tax is going make the product cost go up because obviously the corporation doesn't want to absorb the cost yes they're gonna put it on the people who spend the money and therefore now the people who spend the money are gonna like what the hell Xbox next yes seven hundred and thirty bucks yeah before I buy a game Microsoft it's I'm not paying that like they'll get mad at Microsoft not get mad at the actual economical situation yeah ma I come from the standpoint of the technological warfare ma the future of countries being strong or not and of course everybody's marching towards we won't peace and everybody working

together to better than human human race right that ain't the case right now I mean there is a slightly competitive edge that China has over us everybody when they talk about countries it's not about who has the biggest muscle of course military plays a part of that yeah but it's about AI and whoever has a lead in AI has a lead in country's well-being in the future it's AI and then space mm-hmm right we get space force well you say space force yeah I know but China all these other countries are landing people on the moon now and they're fastly you know putting a lot of the resources behind that we have NASA sure but you know they're dwindling down in terms of Elise the tax pay money and we're relying mostly on private organization which is like an actual innovative way to go about it to detect SpaceX and yes a Bezos company to kind of drive us forward that's the

interesting thing that I am noticing and I'm even writing a game kind of that touches on this point that like corporations are actually setting themselves up to be foreign policy leaders because they have resources in capital and they're actually doing the innovations yes that we as a society will need like I'm actually really happy to see SpaceX looking at space exploration both for like consumers but then also just for like hey we're gonna try to provide Internet or we're trying to you know basically link the planet core itself than Earth to outer space and then see what kind of opportunities exist there because NASA is not doing it as much as they used to exam they can't afford it and like I feel the same anything with you on Monday like Tesla you know for a long time was American engineer obviously innovated and it kept a lot of the manufacturing within the country mmm you know it's only a recently they're starting to look at Chinese they uh they have to kind of grow and be able to meet up demands and and and do that but there is a certain pride when it comes to technologically

advanced meant to keep that technology within the country and if we're exporting all our smart phones and everything like China will have first dibs on like how they obviously making these and then they give it managed to for their own product and thrive within their clothes economy reign because everything that's over there that is their own technology is kind of like copy versions because they kind of keep out they got the blueprints you say they got all the blueprints to keep out all you know basically ignoring all copyright laws make their own Google make their own whatever that is succeeding here because they have a billion plus people to as consumers consumer marketing we only have at max probably four hundred million so you can see the the discrepancy there so it's not like these consoles are coming out with like patented technology I mean they're basically pcs in a box yeah

right for consumer level but I can see why this being like such a huge billion-dollar industry that they're throwing terrorists on this to kind of like set the tone but educate people Haven this is the time where yes we might be paying more internally but you know the world isn't at a place where countries are working in harmony right yet and there is a certain advantage that we have to think about when it comes to the future of the nation and stuff and space AI anything technology driven I really do think it's it's somewhat I'm leaning more towards like I get it you know why this is important so you're you're saying you understand why the

tariffs you you're you're relating to well yeah well because out of the three consoles right we have Xbox that's the only american-made console yeah so I understand the tariffs being kind of kind of just pushing it away from just shine Chinese manufacturing yeah right but like here let's switch through the articles were quick so let's see here to from I mean my perspective on all of this and again I can probably do a little more research before I open my big fat mouth but you know I get paid to do that anyway so what I will say is it's interesting to me because I have to try to find the dividing line between just bravado politics and actual like beneficial politics you know what I mean where a tariff will feel like posturing

in an attempt to gain more leverage between our country and another country right like to kind of start forcing or imposing our will to to get them to then basically react or be subservient in certain ways or we will try to I guess will try to leverage this power to say okay well hey all right cool you know this is a great business and you know obviously we provide a lot of your customers Yammer's so now we're gonna ruin a lot of that business opportunity because our relations are poor right now and we don't ally with you very well so here this is what I'm gonna do to impose on you right but there's a lot of stuff that we get excuse me that isn't being tariff from that relationship between our two countries where we look at import and export where our imports will if they start doing that to us you know I mean we're gonna feel the burn probably faster than they'll feel the burn like we're gonna feel like so if you just look at technologies like oh well we're gonna make it harder for you guys to make Xbox like alright cool we're gonna make it harder for you guys get rice we're gonna make it harder you know

for you guys to get a lot of products that we're responsible for you know to mean some of the wood some of the metals you see like there's a certain retaliation that you will if we do follow suit in this regards if I wanted to be your friend right and I came to you and I was like what's up dude punched you in the chest yeah how excited are you about maintaining a friendship with me you don't you I think that the developing nation of China I don't see them slowing down I definitely know that they have a lot of money and a lot of people who are in tech and I see that power or that prowess growing obviously they have a huge amount of like low-cost labor and a lot of other nations go to China to get production and sure there is like blueprint ripoff and like they're gonna reproduce your stuff anyway but the amount of money that these corporations are making through those relationships is like by far it still worth the risk from what I'm seeing cuz no one stopped going to China because they stopped let's started ripping you all they still go to China they're just upset you know what I mean yeah I mean corporations

have no allegiance to whatever that country they are originally from yeah they look at the Greens I mean that's the only color to care about and they they just make decisions off of that so I think it is up to the individual country and government to kind of like hey there is a need for competitiveness between countries to kind of be able to check them at China right now not only is being in source and outsourced from the US they're getting all types of business from all different countries and so if we were to look at it as me kind of like building up your armor and you know the infrastructure of the US economy is kind of like all the jobs are kind of disappearing or either being automated or just being outsourced right you follow that chart I can see why there are actions that needs to be done to kind of stop the bleeding all right and we see it within our own game industry you know as a as a prop artist that's a

job that's being in within the environment discipline is fastly becoming outsourced as a essential part of a triple-a development and that used to be a job that environment artists will come out of school to get into necessary part to kind of build up to to finally handle environment art and I'm not saying that it's completely gonna be disappeared I don't think that's the case there's always gonna be a need for pop artists within a studio to at least manage the outsourcing right but compared to ten years ago where it used to be an essential part to the environment in process now it's just only a few downsides to a few managers and you can start seeing that within all parts I don't think design would be outsourced thankfully for you guys but any part that they can cut off they will do and if we're going back to this

subject about these console makers of course fighting and trying to like defend their stance of course you know we're talking about 20-plus years working with their manufacturers investing a lot of money in these establishments in China to make sure that you know everything runs smoothly just look at Tesla and you know it takes a while to build that up to be able to be profitable and and the console business itself is already like the car making business very minimum profit in the hardware and often at a loss in for like the first forty five years and they rely mostly on servicing and everything else right so for it might it will they're trying to use excuse that it's gonna [ __ ] the consumer in terms of like spending more money okay but it most likely will [ __ ] them first if they have to take spend as much as like twice now to make one hardware to sell at a

loss so it's gonna be a diminishing industry I think it's out there looking at I think again this just plays right in hand with us saying consoles are gonna be dying very soon you know because you look at stadium the stadium and of ignores this business model stadia is not even a part of this games they don't look like oh well we're handling all that you just need to be able to access our network to play the game and I think that this even more so pushes the lever towards that kind of reality but what I will say is tariffs imposed between two countries don't change the behavior of the corporation the corporation says we want to find the cheapest way to make this product right China has been tariff that doesn't mean stop subsidizing by outsourcing that means stop subsidizing by outsourcing to China yeah so now they just say oh well how about Vietnam how about Indonesia how about India how about one of these other countries all right we're gonna pay three more cents per iPhone right that's not as bad as paying 18 2015 is to hundred more and I

think the government sees that as like obviously the next step for most corporations to fight back on this and I think you're ok with that to be honest because they're trying to kind of like slow down China's your progress in everything yeah they are killing it with everything right now and they have so much money kind of patting themselves up and all the technology is going through they're siphoning through them before hitting consumers and so they have not just their own scientists and anybody that's working within the technology sector they have the whole world pumping in all their resources and the best products know through them and so that you can see how how powerful they are over there in China and China is still a communist con job you guys don't realize I mean they still sensitive whenever they feel sensitive it's not like a a great solution and are a model country but in terms of generating the the resources and income and in the last 20

30 years that they've been insanely smart and like several moves ahead and if anything China is probably the closest to operate like a corporation than anybody else in my opinion yeah because it's how yeah it's a dictation the structure where as a communist government seems I could say I could see the parallels between that and like obviously a CEO run the corporation board of executives run corporation where mandates are created passed down and expected to be you know executed and lived by yeah by employees by you know countrymen yeah I can see that yeah and if you look at all parts of their industry and then we're just kind of slicing it to just entertainment sure because that's more closely relate to us if you just go outside of games like the movie industry has yeah it has become such a megalith

mm-hmm I mean they've always been around ever since the Bruce Lee days and you know made a somewhat of a notice right of saying like hey we're around and we produced great films yeah it's now like a commodity for even us wants to make a present where they had to include a Chinese actor or location to be able to walk in that market because that's huge hundreds of millions of dollars of blockbuster money that either equates or like you know at least on the level playing field of the domestic sales of every movie that's being launched and that's that's mostly because of them taking several steps ahead and thinking how do we compete yeah and Reese you know really gather all this resource I mean it's smart right because all those people in China still like to be entertained and watch movies as well and they have enough disposable income that they can buy a movie ticket yeah it's not gonna hurt you to you know write in two three characters yeah whoo I hate to

use the word but kind of pander to that audience yeah it doesn't disrespect your art it just means that you're trying to do something a little more than awesome and you're good you know be a good business make a good business decision like you look at war the war craft the movie domestically I would say it was not successful yeah but China alone made that movie worthwhile I think three times over yeah just [ __ ] know exactly that supported it in China and that may turn a lot of heads and executives in the entertainment industry other sakes the same way right they only see green and you know they don't care and there is a certain dangers of that because if you if you as a nation don't really pay attention to much about you know having a country's competitiveness and China's constantly thinking about that how to like leverage themselves and be in a dominant position 20 30 years down the line yeah they're playing the long do you expect yeah exactly and what is the outcome of that I mean they're not gathering resources

just to be on the tallest podium right there I'm not exactly saying there can't gonna call in a war for anything but there is a certain competitiveness that we've lost I think in the u.s. we're just exporting all the goods over there if I was China and I look at how they're positioning themselves right now how I would play my chess pieces is becoming so integral in the success of other nations corporations worldwide means that I'm directly related to the success of those nations people their jobs like how many people do you think Microsoft employees how many people do you think Sony Nintendo any of these major technological corporations employed not just from like the native countries of Japan you know or wherever else you those technologies may come from Korea like for Samsung there's a lot of people domestically even u.s. who worked for Samsung who worked for Sony who worked for Microsoft Nintendo all these technology companies so when you start summing up all the hands that touch these products that go through China domestically that's like you saying all

those people are gonna be without jobs or you know we're gonna impact their lifestyle if things go bad China knows this so the more reliant they become for helping these other corporations do well the less likely you're gonna see other domestic nations or other nations want to attack or want to have a bad diplomacy with China so therefore China then becomes a powerhouse even further not only with manpower but just because relationship power that all men wear they're untouchable now and I think the monopoly exactly that's the route they're going for as a superpower is - they're gonna be integral in the success of not just other nations but the corporations as well which employ I mean just immense amounts of people and there is no politician that will stand up in front of like 400,000 people about to lose their job and say we need to be tougher on these people so that you know the country benefits and when they're like no because we are going to lose we are gonna be out of work we are gonna have x y&z happen to us so I think it's pretty smart it's like it's Trojan horse

style you know grow but that's it work it work then it's gonna work now yeah yeah it's uh so that's why when I read this news in I've always just read through the article because I think it's the sentiment through this article is kind of like broaden to other other news outlet that I've seen about this so if we're looking at this right now this is from the next wave column right it's the most referenced read article about this topic so of course the console makers are making a stance against this they don't want to do this and of course to to make it relatable they always say we're gonna be paying eight hundred and forty million dollars out of our all pot come on I'll just play on Stadium but like that's already an example of what I was illustrating earlier is like we have the corporations now trying to levy against their own governments to try to keep you

know yeah I mean China doesn't have them even say anything yeah they don't the corporations are in their pockets and they have all these lobbyists basically there's so much power but China is the only one that can do this you know I will say this it's a pendulum swinging effect China because of I don't want to call it poverty but you look at the quality of life you look at how much money was need to maintain at least minimum quality of life like society accepted minimal quality of life in China versus America let's say from 1970 till now I mean it's a skewed perspective yeah over here we have higher expectations we are on average exactly whereas in China they're like I can live off three four dollars a day yeah are you kidding me you ask somebody here to do anything for four hours a day that isn't under the age of ten along every night it's not gonna happen yeah and so the pendulum swing is now like okay well we've created all these production jobs you know we've got these people working in factories we are a production powerhouse and we're paying

$4 a day cooperation is like well over there actually that makes sense four dollars a day is miserable here but over there like we can see how it leads to a decent lifestyle yeah I'm just paraphrasing here right pendulum swings that way now other nations fall cuz we have people who are in production who aren't employed we have the you know our quality of life is gonna drop now this will not happen over five years ten years but long-term fast-forwarding you're gonna see quality of life in China arise you're gonna see their expectations and their social needs start to rise whereas then we attentively start to to swim down into the like oh dang I could use four dollars a day in America I don't have a house I don't have constant food but I have zero a day so I'll take the four a day yeah you know what I mean and so that's what we're seeing is this part happened now yeah the rise of China in the fall of everyone else who's not doing cheap production right but then you know I don't know if I'll be alive to see this but there comes a point in time where now China has replaced us as the like oh this is the great place to be this is awesome look at my lifestyle looking at

this money I make and then we have we're third world for sure yeah and we're like hey you know we'll do it like just pay us four bucks a day we're down pay us for janna day wearing it in his pocket in so many ways I mean like we the the Indians Japanese what's the which I just said a racist I was trying to say like what's the China account list I don't remember what there are you know that isn't that Japanese yen is Japanese I think they do yen China does young as well I thought Japan does yen I think all the Asians do yen it's not racist it's ignorance I didn't actually know the name of the currency currency but anyway so now we will be looking at taking the the Chinese currency you want you on there you go thank you you're right fifteen cents I did win United States dollar so one one is fifteen cents of United States dollar check that fact take ten years ten years just well right now we're in their pockets as in all the

weight not alone what's the unit treasury of the debt the deficit has been mostly bought by China yeah so we all China money if we're talking about ourselves as a nation yeah only that y'all all the profits and everything that's being made we're paying China yeah like all the money goes through China you know this is just one country yeah imagine the whole world right yeah so it's not only the the work that's through them but it's also the monetary value of everything is going through China tariffs is a short-sighted view of trying to attack that problem the real problem is just competitive we're not competitive we're not competitive it's like you go to your son's basketball game and they say hey Brandon your son Bruce on the Blue Dragons you guys so good so every time you all score a point we're only gonna make it worth one-fourth of a point right whatever they score a point is gonna be worth one point yeah that's the new rule yeah like what we're both playing basketball we

both have the same amount of people the same positions my kids aren't older than theirs yeah but look just it's just not fair yeah that's that's like the tariff approach that's what's happening here it's like instead like train harder be better then you can beat them we can beat China if we can out produce them for cheaper if we can't be cheaper can we be faster yeah if we can't be faster can we be higher quality significantly higher call right that's the triangle and instead of attacking the other two things that we feel like we don't have control over we're just trying to tax their points yes and I wonder if there are studies that they all look something up Wow you talk well if there are studies out there where of course if these people are in the assembly line it's not like they're getting not everyone is the Einstein is able of like working on a station and a small part of the process right but I can't help but think but being around that having relatives friends kind of work in those factories I know it's horrible life because you're making four dollars a day but still being inspired by being around that will

help kind of push the youth towards more in that direction and become manager of those factories or like it to me it seems like a clear path because of them being relatively close to that industry where over here where no one is really touching technology unless we have like a very specific interest through our other means all of our blue-collar stuff is is based on hundreds of year old business models not business models business markets Yeah right coal steel iron like metals alloys and things like raw material cereals we've been doing that for hundreds of years the development and exporting of like technological you know components we're looking at maybe the last 30 40 years kind of thing yeah you know Davina and so that's why I feel like we're being out we're definitely not in a position right now to compete

with them because when you talk about blue-collar work you have steel workers you have coal workers you have all these people in industries that they're just in general the world is starting to use less maybe not so much the construction stuff I think raw construction materials is always gonna be valuable so those blue-collar jobs are protected here but like old coal like when Trump was on that whole like oh I'm gonna save the job for the coal workers coal is clean coal and all that stuff now come on China doesn't care about that they're like okay cool well we're gonna keep working on these alloys for microchips and we're gonna keep giving you guys the cheapest to produce products because we're in a consumer-driven world right now China is in prime position to just reap all the benefits yeah I'm I'm beat you gotta look beyond I'm sure there's some contractual this because these factories that they also have probably separate right it's not like the factories that is producing all these Sony consoles the next day are making the Tendo consoles right there's got to

be like a differentiation at least in the contract saying you can't work for a competitor if we're gonna at least in this location well you know I would imagine even if that was the case they'd be like yeah sure no problem yeah of course I know it's very shiny like in your face I like there's got to be a part I'm damn sure of it there's a part of the government that is solely looking at all these technology companies competitors essentially looking at their best output right they have their internal scientists in their country you know in Korea Japan whatever figuring out the best way the cheapest way to produce and they're like all right we got the blueprint this is how you do it and they kind of seed it through China and China looking all right so everyone has a different way of doing this let's gather that let's do it our own way what's the best way to combine all the best efforts yeah and I mean competitors are doing this if they buy a Xbox can no one's doing that because it's the same box nowadays but imagine beyond

games and vidya AMD like every technology thing is being exported to China to to mass manufacture but also going through a government arm to look at all the competitive competitive edge that everyone has and there's their sourcing that into their own country right and this is what we're already like 15 20 years too late all right but like this Elise gives a pause to the production line I mean they already probably figured out a way around this as a you know right now they're don't don't believe Microsoft attend no and so they're just waiting to hear a response from the government they really are thinking alternative ways to kind of still keep it cheap but just not go through China Kings pass yes but we're okay with that because as a nation because we want to kind of stop the

bleeding in my mind because it is a very dangerous flaw how we're so far removed from any of the products that's being made on how it's being made right it's not like every kid I wonder the percentage of kids nowadays have the curiosity to actually open up a box and reverse-engineer versus how it was 30 years ago yeah not like it used to there are so many other ways to you know kind of get fascinate there's so many distractions me alright I see a lot less interesting math Sciences for entertainment value yeah and versus a kid or a doll who's surrounded by everybody doing this whatever I'm just gonna spend time look at this well yeah you're right about that the influence factor of proximity especially between child parent huge yeah but anybody who has a kid especially if the relationship is good will see the kid trying to emulate or trying to do the things that they feel like are being subliminally taught to them by the parent even in the wild you

know like when you see Cubs wrestling with each other and we brought this up before obviously that's play but it's also war it's just safe simulated war that when they become full-grown lions or full-grown tigers whatever they use those same moves but this time the bite is real yeah this time the pawing has the claws yeah you know and so like you said yes so if the kid is seeing their father be a mechanic or being an engineer or like something along assembly line worker but you know they know that that's what you do to pay for things that to bring money home and that's how they work their job you might see the kid pick up interest or at least because of the exposure there's a higher chance they know about that as an opportunity and they go into it yeah and and the parents will also like hate this is the future this is what China is positioning themselves to you need to learn how to do this at least be a manager of the factory but maybe create something on your own because we are getting we're pipe being piped into all the best are the best ways to do those things plus with many opinions on how to

do it and now we can come up with our own way and this is where I feel yeah I mean taxing on these corporations will definitely tax on our there's no doubt about that first has been passed through but there is a certain part where you got a this is where the capitalism I think within a country although has its good part to be competitive where it gets kind of muddy because you kind of start removing yourself from your allegiance to where you live okay and you're kind of I think think less of being a group than an individual okay and there's pros and cons to both sides of course but this is where I think if everybody over in China is kind of thinking 20 steps ahead and how to be a powerhouse you know at some point we're gonna be allegiance to China in whatever they decide and and and everything that

we do job was well and reliability is you know it's the same way we work in an outsourcing studio right I'm not I'm not hating anybody that works in an else art studio but everybody's preference is to work at the main first party in studios when you work in the game industry or any industry right yeah I imagine myself being in the roll all the time where I'm getting creative decisions from alts or student from a studio primary studio told you and then I have this little room to be creative but not really and I'm just doing the work like an assembly line I mean that is a very realistic scenario for us 20 years in line for all this one day you know it'd be cheaper to make things here yeah and and do you wanted to have that well here's here's the possibility here's the thought that I think about when I think about how these foreign politics play out and again I like the timescale I don't worry about myself living to see it I just worry about what I think the inevitability is

and assuming China does become worldwide superpower times 10 and now every country is like dependent upon them for the survival of themselves their corporations and GDP related items because they're like hey we need your components for everything that we do do you want to be the country that was like hey China cool so happy that you are developing let's work on increasing prosperity between our nation's what can we do to aid you because China hasn't been running around trying to start any wars yeah I know if over my lifetime currently I haven't seen them send troops anywhere to especially its attack us right we it's always been like lean on diplomacy from USA like the like we put our weight on them you know what I mean because we're worried about them doing it to us later on but let's assume that does happen who's China's favor gonna go towards there the nations that send them tea crumpets and you know celebrated with them or the nations that tried to hold them back the whole time yeah like so which side of that fence I guess do you want to be on if it's an inevitability yeah right and so that's that's where I

worry it's like well I don't think our foreign politics are gonna be appreciated very much if we're tearing them and we're continuing to try to be a pain in their ass now we're not blatantly holding them back spitting or disrespecting them as a nation but we are making certain things complicated for them because of fear of growth from their nation and how that would affect or in turn remove power from us and so there's a whole there's many ways to skin that cat but the thing that I worry about is like aha I remember you USA you exactly but I mean what's your overall feeling about this do you think this is a smart move to tariffs China for to purchase well let's keep it within games right like the consoles okay if I'm just looking at games and looking at the lifecycle that I know on a macro level or excuse me on a micro level because we're taking a subset of all industry we're just talking about games it does not help the game in issue whatsoever those corporations are not excited to sell an expensive product more expensive

like even without the tariffs for the last 10 15 years consumers complain about price points yeah right the sales of consoles don't really start to take off until the console has reached the point where the saturation of products produced versus products sold brings down that cost right when the PlayStation starts to hit the 299 the 199 Christmas time that's when you really start seeing people invest in because that initial like $400 $500 like it's hard to chew on yeah but the like to $49.99 Xbox one right now I bet you're selling way more than the $4.99 Xbox when it originally came out so they're already having pricing difficulties you know what I mean the last thing they want to do is try to find a way to add economics to their business model and say we got to make the customer pay for this we got to make the customer pay $700 now I think all that we're gonna see out of this is not avoidance but abandonment of console and a further push towards well you know what all these other people making

devices are making them capable of running you know decent looking games at 60 frames a second if we're a video game company and we want to sell entertainment and experiences the console used to be the gatekeeper to those things that may not be the case anymore let's explore like Sony or like stadia is doing see if we can just give the accessibility some other way and still provide the gaming experiences then we avoid selling $500 consoles altogether maybe we can save that money maybe we can invest in more games or more studios and not have to pay for consoles whatsoever yeah I think I agree with you man and like obviously we're continuously having the bike console is gonna hurt us because they're really selling at a loss and it's gonna force another thing alternatives I mean they're not gonna go that far they're I'm just gonna outsource it Indonesia or whatever just to avoid to China around if they have to right but they're still fighting this to see there's like most likely gonna be a compromise I don't know how far this will go we'll see you yes but I mean it supports what we've

been thinking about the console business for a long time it's fastly being outdated and stadia is one of the first steps to kind of focus on a software Xboxes already acknowledging themselves you know they're focusing on game past I mean this is a transitional period that's the only reason why they're coming up with an Xbox Playstation obviously it's the leader in the console business so they're gonna continue that obviously why fix something UNICEF broken a Nintendo found a niche with the handheld market they've always been dominated in that and they've combining the console with handheld business and there's every reason for them to continue the console but uh if if push comes to shove right but I have no problem thinking that they're going to come up with an alternate solution that's gonna make sense to them and and for consumers so for me it this isn't such a big hit as it if they're making it out to be they want to avoid it because they really have plans in the next 5-10 years to keep the gravy train

going right they don't want any upset and you know they're banding together you know they have the same message but you know this is just some corporations kind of having no allegiance to any country and they don't want to they don't care right it's kind of like war where you're where we're arms dealer can I sell to both sides right they have no no dog in this fight - any country so they don't care about that for right now though they're kind of like of course on China's side because all their operations over there but this is where China is so smart they planned for this I mean they have steps one through ten of when US starts to smarten up about this and how this will like kind of destabilize a country by exporting all their technology basically to us when they've

finally decide to do something will be too late but we have steps in place too you know we have corporations in our pockets to fight for it we don't have China has not said anything yeah that is making newsworthy right it's all these console guys kind of standing up from and the effect I think I don't know what the consensus is right now on the consumers side obviously we haven't talked to anyone about this this is just really off the press yeah but even when I'm reading the the articles on it it doesn't seem like it's leaning too much either or it's just covering the fact that Sony Microsoft and Nintendo doesn't like this yeah oh of course yeah I mean as a corporation their job of protecting the black and protecting the shareholders interests obviously that's the first step they would take is to lobby against I guess where my or my

crystal ball you know theorycrafting is happening is it's more like I already thought it was were towards the end of consoles as a thing anyway right - now see the government trying to step in and levy tariffs in this way I don't necessarily know where that book stops because will there be another target after China because if we like move to Indonesia now is Indonesia are gonna be like oh no we can't have them making competitors a very little but I know what you mean right so I can't trust that I have control over who and when the taxing is going to happen obviously yeah but I also feel like I don't know if I'm gonna see an Xbox six and I don't know if I'm going to see a PlayStation 6 in general so I'd know 100,000 percent that the companies responsible for bringing us these consoles are already at least three to four years into the development or to their to their lateral plan yeah lateral plan meaning if we had to abandon consoles what are we gonna do how are we gonna do it what are we gonna roll out yeah those are indeed apartments are hard at work already yeah

well I mean let's let's go over to our Twitter section if you guys have opinions go ahead and invoice and we will read them because we are very open to discuss on this obviously Larry and I have our very funnel perspective on earnings or viewpoints our viewpoints right but we welcome anybody to talk so ecchi tubby thank you for joining us he mentioned China has a workforce willing to suffer and make less for the greater good of their government in quotes right American workforce feels like they're old for everything second they spin off their their couch do what off their coast the second they get off their couch they feel like they're being old something right it is a sentiment that is true area there's a this is even the classic East versus West attitude about you know China is all about like for the greater good of everyone well they have to be they have to which is the like you go against the government right yes they're very nationalistic yeah and it's been like

that for centuries yeah and not just the last 50 years that's how American I mean the Catelyn we have a capitalist competitiveness among everybody and everybody is always trying to climb the ladder and so that of course it's me versus you attitude and yes it's I think it would be a lot harder for Americans kind of stand together to look 10 years down line when obviously they look around their situation and it's not as good as they think it should be right I think that's a very global general attitude nobility Americans and there's a lot of intricacies at play here with why we see attitudes the way that they are yeah and like why we as a country may not come together as easy as China as a country but I'm gonna generalize here and say when I think of China as a country and I think of all the groups that make up China I would say China is ninety-nine point eight percent Chinese oh yeah you know what I mean whereas America I would say you started to say likes varies one of eight percent white

or you know thirty one percent Hispanic and then like eleven percent african-american say twenty eight percent white they're already upset but you but you see what I'm saying right yeah there's a lot of different these demographics are way different you know and we're already seeing empathy issues where like all men this person gets shot and killed well what did they do to deserve it yeah yeah this is the conversations that Americans are having with each other I'm assuming that's not the same case in China I can see their country as a nation easier to band together because one they're all related still generalizing but to the way that their government structured is you get told what to do quite often yeah and the penalties there for going against your government way different yes I mean you got an infection of the brain washing over there it's really huge right I mean if the the the anti-government sentiment is non-existent I think in the large part over there because you know China is killing it I mean they're doing well it's hard to argue that the choices

they've made as a country is working against them but they've been flourishing with their economy technology everything or there I mean they go into space we got sick I mean everything has been working so it's hard to kind of take their word and be like you're bullshitting me as in in the US you see all this problems yeah and and jobs being exported and people are just having a tough time getting through everyday life it's very easy to kind of point in the gunroom is what's going on and then you're looking at within the government I mean there's a lot of you know where's my tax money going and there's so much that attitude goes stems from the streets to the White House right like everybody's just in it for themselves and government is supposed to represent the greater good but you know if we're just staying within the technology front net neutrality was a clear indication of like [ __ ] you guys yeah you know this is not a public opinion this is because we want to be able to to tax extra gigabytes in your

home internet that used to be free for all right I got I got you know we're streaming a lot more now right and my home internet and the it tells me like oh you're at 85% internet usage so after you get a soon to sick well we'll add 50 gigabytes for $10 like what the [ __ ] like I never never in my life thought I would see that day where I'm being charged extra gigabytes for internet that I'm so accustomed to and I'm the cheapest [ __ ] out when it comes to paying extra when it used to be free right so these are the type of things that I I see when it comes to like American sentiment towards for the greater good it's just you know from the bottom to the top everybody and everywhere have been telling you in your life that capitalism it's capitalism and be competitive you know the the government the politician that's supposed to protect you he's in it because he's winning it and if you have

something to say do something about it I mean that is the cool thing that we have the freedom to kind of stand up and oppose but we're what you call it it's not see step or when you someone's watered down where like so it's been cut it's been I know you're trying to say so that you're so on the tongue okay it's like 1984 [ __ ] right so you're like desensitized I guess when you're so it's you've had something along the purity is lessened yes okay so it's not like a nice and greater yeah like your step though you're not like yourself now right it's it's that you've been desensitized to a point where as a person you don't know where you stand you don't have the ability to make their calls that you would if you had a full education on everything's happening around you so this point plays a part in all the exports were doing you know I

have no idea how to put an iPhone together I'm sure I can eat see a bit and everything but it's so far removed from like the everyday life I mean it's it's idiocracy right it's it's it's it's I feel like as a nation we're getting dumber on the essential parts of of the feature the tech name technology front although we have like the best companies in the world can we keep saying that ten years down the line no are we gonna have Google Tesla and Facebook that is American grown ten years down the line are we gonna can still continue to be the dominant force of that I say the best barometer for that is look at where they recruit talent now look at look at their leadership positions and just see if their domestic or not yeah and that's not to be like racial discriminatory I just literally mean like see where the talent was acquired from that could be a telling source of where talent is being produced you know what I mean

are we domestically hiring leaders or are we like hey here we've brought in you know Sanjay because he's qualified he's excellent like no disrespect to Sanjay yeah but that to me is like a barometer of like oh wow like did we have an alternate version or a competitive version that was you know domestically produced if the answer is no then look at that if the answer is yes then okay cool like we're still in the game you know what I mean yes and I mean I think that's part of the danger that everyone's kind of worried about and dude I am like the dumbest person when it comes to politics because I pay no attention to it I think it just feels like it's the same people on both sides just talking about the same thing but for me when it comes to this type of stuff trying to get ahead of what's I'm seeing as industry and I've experienced you know I worked with outsourcing teams whether than the game industry and yes most of them are Chinese so I've had my experience with them and I've seen a person right next to me

doing the same job I've done but like cents on the dollar right and 15 cents to the dollar and it's literally like that I am it's like a clear eye opener of why do they need me to keep being paid at this level the only difference is I speak English better than this guy but we look the same but like that's the that's the reality and that to me is a physical manifestation of what everyone's worried about being outsourced and not being competitive where for a capitalist country you know keep it competitive within our country you know I mean don't just go for the cheapest way to do things just so that you you you're a step ahead build a little on the other company and it's like look as our self as a Americans let's and try to help each other out and I think that's our biggest problem that I think our current

government is probably just fine with you know is that because of the way that you know we're all kind of disenfranchised because of the way that we are bickering and fighting on any sort of polarized issue like having marches where we beat the crap out of each other because one side is neo-nazi and the other side is obviously not neo-nazi or you know or racial clashes are like all of these reasons why people are willing to trade blows with other American citizens is the biggest thing to overcome if there's ever gonna be a point in time in our history anymore where we're like hey we as the people are all gonna suffer from X so let's fight against X yeah but you're a n-word you know me first you know what I mean like it's corporations like looking at us unionizing they know that that is working in their favor the government's being overthrown know that us unable to like see eye-to-eye and respect each other as a nation of individuals is why there's no fear that they will ever be uninstalled or canceled

as the kids say these years no I think this bigger issue at hand here and I think anybody is a game right now don't look at as it just like I'm gonna be spending how much more buy a console if you're American especially you got to really look at the bigger picture here and look beyond of just why Sony and Microsoft is actually on your side it's not true man these are corporations and we forget that and we are a billion plus industry everybody wants a piece of this for the government to finally take notice and be like holy crap how many of these consoles or how many games gets sold or making a mark everywhere now everybody from the movies from the game sectors of course and anybody outside of the art game industry like the enterprise industries are it's great they're finally paying respect to us we used to be teased by everyone but now

everyone's respecting us but to what end right like we need to really be careful about these stuff because it will affect us you if China completely controls everything that we're gonna be kosher right you're not gonna enjoy console when China tells you and be communist within your country and stuff there's like there's bigger things but the displaying gains so to me that represents a lot of that well what I can say is if you're interested in studying more or being able to better predict how these things may play out just you know take some time to study macroeconomics maybe watch a couple of YouTube videos so just get your mind thinking down that path and seeing how the tail end of the dominoes start to fall you know so that's that's the way I kind of piece things together myself is like studying macroeconomics so I I mean that concludes our hour thank you for joining us and Larry's gonna see you Sal hey man so you know when you go to the barber shop they cut your hair he put your hat back on I think I said it before but consider yourselves recapped

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