Tariffs Are a Nightmare for the Industry, But Game Prices Should Stay Safe from Changes
A new article from GamesIndustry.biz discusses how the introduction of tariffs by U.S. President Trump’s administration is creating big problems for the video game industry. The tariffs are seen as a major headache for the industry, but digital game prices might stay safe from any changes.
With the 90-day suspension of the tariffs just after their announcement, the economic situation has become even more complicated, and the outcome is still uncertain. It’s hard to say how the video game market will adjust, but there are some factors we can look at.
Rod Fahey, along with advice and analysis from various experts, has some hope that digital game prices will remain unchanged, at least for now.
Digital Games Should Stay the Same Price
The main issues with tariffs are related to hardware production. China, in particular, has been hit hard by these tariffs, and the U.S. government has set tariffs at 104% on products from China.
This situation is hurting the production lines of many tech companies, which have assembly bases in China or Asia in general. It’s likely that these tariffs will affect the costs of hardware production, including PC components and consoles.
However, video games are in a different situation: digital games should not be affected by the tariffs. These games should not see price changes unless there are other factors influencing them.
Physical game production might be affected by the new shutdowns. The companies involved in mastering and packaging games might be located in countries hit by the tariffs, especially for the U.S. market.
Many physical games in the U.S. are produced in Mexico, and tariffs could increase production costs. However, it should be relatively easy to move production lines to the U.S. to avoid this issue.
In general, though, there’s no clear reason to expect digital game prices to go up due to tariffs. They should remain safe from changes and price increases.