Impact of Tariffs and Current Economy Will Have Long-Term Effects on the Gaming Industry – Analyst

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In “Mario Kart World” costing $80, the projected higher price of “Grand Theft Auto 6” than the standard $70, and the $449.99 launch price for the upcoming Nintendo Switch 2, analyst Mat Piscatella from Circana suggests that the gaming industry is venturing into uncharted territories in terms of pricing.

In an interview with GamesRadar, Piscatella discussed the potential challenges upcoming games might face in 2025 due to economic realities. He pointed out that the purchasing power in the market is decreasing, particularly because of the tariffs imposed by the US on imported goods. This could potentially impact not only consoles but also their related accessories.

Piscatella expressed that while people are hopeful about the release of projects such as Switch 2 and GTA 6, there’s a growing concern due to the potential impact of tariffs on these industries. He added that everyone is wondering how these trade-related issues might affect products like accessories, hardware, and more, creating uncertainty about what could happen next in any industry.

As per Piscatella’s statement, the gaming industry is adopting strategies like “contingency planning” and “reading between the lines” to anticipate market trends. In other words, companies are trying to make sensible decisions for future actions as the structure of tariffs has been uncertain and difficult to predict.

People seem to be in a state of watchful anticipation, making plans as they go along and remaining hopeful that with the launch of Switch 2 and GTA 6, the impact of tariffs might decrease due to an increased digital presence which is currently exempt from those tariffs. However, everyone remains somewhat anxious about it all.

Due to the increased inflation in the U.S. resulting from the ripple effects of recent tariffs, Piscatella also discussed that the gaming industry may not escape the impact of these price hikes.

If everyday items such as groceries become significantly costlier or other essential categories increase in price, consumers will have to carefully decide what to prioritize. For many, this might mean choosing between necessities like food or indulgences like a new game. However, there are some passionate gamers who might opt for the game and survive on instant noodles. Ultimately, everyone seems to be adopting a wait-and-see approach while preparing for potential future changes.

He went on, “The market is experiencing significant stress. Add factors such as a potential recession, increased food costs, and various other elements, and I believe the situation could become quite challenging.

The discussion often revolves around who Switch 2’s main rival will be. Frankly, I suspect that the primary challenge for Switch 2 might stem from its availability and tariff issues, although time will tell how things unfold.

Regarding the Switch 2, Nintendo was mindful of the potential impact tariffs might have on its price. In April, they chose to postpone pre-orders for a while to observe the situation more closely. However, they eventually started accepting pre-orders in Canada and the U.S. The console is set to be available in stores starting from June 5.

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2025-05-02 09:11