Building your own gaming PC has kind of been one of the many ‘rites of passage’ gamers undertake. CaseLabs had been one of the companies dedicated to providing parts for gamers and other people for their dream PC.

CaseLabs recently released a statement that detailed their announcement and some of the reasons why they are facing bankruptcy and liquidation. The major reason why would be pointed to tariffs that hiked their prices by up to 80%. This coupled with their accounts that they owe to other companies, it culminated into a huge amount of debt that was simply not payable.

They did look at other avenues of attempting to maintain business such as making deals with other companies or using loans but it would either delay the inevitable or worsen the issue. As a result, a lot of their assets and other debt obligations will be sold off and effectively no longer be in business to suit our PC case needs.

Customers of CaseLabs were promised that the company will still attempt to ship as many orders they received before their declaration but stated that they will not be able to ship all of them. Their website is also disabled from taking in any more orders to prevent mishappenings due to their situation.

The basic reasoning of their closure was the current economic climate the US is facing. CaseLabs was not the only company that suffered from it as multiple companies were forced to cut back on costs to maintain profits or relevancy. As CaseLabs stated in their statement, tariffs that the US engaged with China had been a major part of their misfortunes.

Tariffs are essentially a tax imposed on an import or export, in this case, it hits imports on goods from China or other countries the US imposed tariffs on. As a result, items CaseLabs and other companies would purchase as a component or other means for their product becomes more expensive hence the 80% price hike on their goods. This means that CaseLabs’s products become less attractive to purchase and therefore fewer customers would be interested in buying their stuff.

This doesn’t increase CaseLabs’s potential profits as the prices are generally matched to maintain the profits rather than increase it. This eventually leads to a weaker sales competitiveness which is a major setback for any company not in a monopoly.

It is important to understand that the economic climate could affect any company and as a result, make the very games or consoles we buy more expensive than they should be. If you can, always try to support the gaming companies you can, especially in tough times.

Gamer to the core. Will play anything casual, complex or competitive just to know what it is all about. Often ponders why he never has enough time to play all the video games. Also loves to follow eSports from all kinds of genres such as MOBA, Fighting, shooting and RTS.