Upon his inauguration on Monday, one of President Trump’s initial executive orders proposed a 25% tariff for Mexico and Canada, expected to take effect starting February 1st. Since a significant portion of video game disc production infrastructure is based in Mexico, it’s unclear how this might affect the end consumer. Whether the order will actually be enacted remains uncertain. However, analyst Mat Piscatella from Circana has voiced his thoughts on potential impacts on video game enthusiasts, anticipating that prices may increase overall.
Speaking on social media, Piscatella forecasted a significant decrease in the quantity of games sold on disc in the US due to a large portion of the production facilities being located in Mexico. If manufacturers choose to continue producing discs, consumers may notice an increase in their prices, he stated. This price hike won’t only apply to physical discs but also digital game prices, according to Piscatella.
In a digital game, there’s no need for a disc, but game companies might strive to keep prices equal between physical and digital versions even if taxes raise costs. Piscatella noted that it’s unclear how this will unfold, as he’s only speculating at this point. However, he stated, “Regardless of the details, this isn’t beneficial for the traditional video game market.
Piscatella mentioned that American video game companies might relocate production from Mexico to the United States, but only at a substantial cost. However, given that the spending on physical games in the US has dropped to about half of what it was in 2021 and is falling quickly, this shift is unlikely, according to Piscatella.
Trump has proposed the possibility of imposing a 60% tax on Chinese-made goods, a move that might bring about substantial changes in the video game and gaming hardware industries. However, there are doubts about whether such an action is practical or likely to materialize.
In the gaming industry, there’s speculation that the release of GTA 6 might lead to an industry-wide hike in game prices, possibly reaching up to $80 or more. This would be a further rise from the current price range of $60 to $70, and experts suggest it may occur without much resistance.
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2025-01-21 19:08