Concern Proposed Tariffs Could Accelerate Downturn in Physical PS5 Games

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On the PlayStation 5, a modest number of players prefer physical games, so the bulk of significant releases continue to be available in stores.

There’s a worry that the suggested tariffs on goods imported from Mexico might speed up the pace at which board games become less available.

During a recent inauguration speech, President Donald Trump once again expressed his intention to apply a 25% tariff on foreign products, including those imported from Mexico. Notably, as highlighted by Circana analyst Mat Piscatella, a significant portion of the United States’ disc-based video games are produced in Mexico.

Instead of Trump’s assertion that foreign exporters cover the tariff costs, many counterarguments suggest that it is often the importers, such as video game retailers in this scenario, who are obligated to bear these additional expenses.

Piscatella noted that as a result of a 25% tariff on imports from Mexico, there may be a significant decrease in the number of physical game releases in the U.S., since a large portion of the manufacturing for these games is based in Mexico.

On top of everything else, the analyst predicted a possible increase in the cost of digital games, since publishers might aim for uniform prices among their various offerings.

As a gamer, I’d guess that if something changes, digital game prices might rise to match their physical counterparts. But, you never know for sure.

Initially, Trump proposed that tariffs would commence on the very first day of his presidency; however, he’s delayed their implementation until February 1st instead. Importantly, it’s worth noting that if these tariffs do come into play, representatives from various industries might attempt to secure exemptions for video game products through lobbying efforts.

According to Piscatella, shifting production to the U.S. is technically feasible, but it would necessitate a substantial financial commitment. Given the consistent decline in physical game sales every year, it’s doubtful anyone would be willing to bear such costs.

Absolutely, it’s crucial to monitor the situation closely. As earlier mentioned, the potential tariffs might significantly impact the video game industry and broader economy, yet it remains uncertain whether any modifications will indeed occur.

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2025-01-22 10:06