Will software and video games get affected by tariffs?

In the year 2025, tariffs seem to be a recurring topic, leaving people worldwide trying to grasp their global implications. As a gaming enthusiast, you might be curious about whether tariffs could influence software prices, and if so, by how much?

Although many aspects are still uncertain, I’ve compiled the most valuable insights we currently possess along with essential points to bear in mind at this moment.

Will tariffs impact game prices?

Will software and video games be affected by tariffs?

It seems improbable that digital game or software costs will rise soon, but it’s a complex issue. Unlike tangible items, software and services such as Xbox Game Pass aren’t directly influenced by tariffs. However, tariffs might cause indirect consequences, potentially impacting other aspects of a game publisher’s operations.

As a researcher delving into the realm of digital entertainment, I’ve discovered an interesting aspect: while digital-exclusive multiplayer games are immune to tariffs due to their digital nature, it’s crucial to remember that they still require tangible resources to function effectively. Developers rely on hardware such as computers, servers, and other essential equipment to bring these immersive experiences to life.

The physical hardware is experiencing an influence, as evident currently. Gaming editor Rebecca Spear is monitoring the effects of tariffs on portable gaming devices, while contributor Cale Hunt advises to consider purchasing a Graphics Processing Unit (GPU) in the near future.

According to analytics company Niko Partners, it’s not the tariffs directly affecting video games, but rather these trade tensions pose a significant threat to the capital required for the revival of the struggling gaming market. Moreover, this conflict could potentially influence the launch of upcoming gaming devices such as the Nintendo Switch 2.

Developing and maintaining digital-exclusive games might become pricier because of various reasons, one of which is indirectly related to increasing tariff costs. Consequently, it’s plausible that the cost of a game could escalate as a result.

Essentially, the European Commission warned it would impose taxes on tech firms such as Microsoft, Google, and Apple should the U.S. go ahead with its planned increase in tariffs on EU products. But since the U.S. has suggested a 90-day delay, the European Commission has followed suit, at least temporarily.

What do tariffs do?

Import taxes, often called tariffs, are fees that businesses or retailers must pay when they bring in goods, parts, or raw materials from another country. Governments of countries may levy these tariffs against other nations for various purposes such as fostering local production, safeguarding domestic labor forces and creating employment opportunities, or simply to instigate disruption.

In contemporary terms, tariffs have gained significant prominence due to the protective trade policies enacted by the Trump administration in the United States. These policies involve imposing substantial tariffs on goods imported from China, as well as smaller (though still impactful) tariffs on products from almost every other nation worldwide.

FAQ

How could tariffs possibly affect game prices?

Digital items don’t get influenced by tariffs, but tangible products do. This may lead to changes in the pricing for physical versions of games, even high-end collector’s editions.

Manufacturing physical games involves both workforce and resources, as they need to be printed. Since various publishers utilize diverse production facilities across the globe, determining whether a physical game could incur tariffs (and at what rate) relies on numerous factors.

Will game prices go up anyway?

It’s quite plausible that gaming prices may increase due to factors other than tariffs. For instance, Nintendo’s upcoming Mario Kart World, which serves as a launch title for the Nintendo Switch 2, is priced at $80 in the U.S, marking a significant increase in game pricing in recent times.

As an avid gamer, I’ve noticed that various game publishers employ a flexible pricing strategy. This means that the cost of different games can vary based on elements such as their production budget and the perceived worth, allowing for more affordable options for gamers with diverse financial situations.

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Astro Bot (September 2024) – $59.99
Avowed (February 2025) – $69.99
Helldivers 2 (February 2024) – $39.99
Marvel’s Spider-Man 2 (October 2023) – $69.99
South of Midnight (April 2025) – $39.99

It’s important to note that not all games will reach the highest possible price point, and this holds true for Nintendo as well, despite the company increasing that upper limit.

Currently, Mario Kart World is the sole Nintendo game priced at $80 in the United States. However, it might not be long before other companies introduce similar pricing strategies. Rest assured, I will share any updates I come across as soon as I get them.

When will the tariffs end?

It’s uncertain when tariffs might conclude; they could be abolished within the next few months, or the situation may persist until as late as 2026.

This circumstance is exceptionally unpredictable and prone to sudden shifts. The experts find it hard to grasp, as facts seem to evolve faster than they can make sense of them.

Keep yourself informed about the most recent developments regarding tariffs, including their impact on gaming, computers, laptops, and other related areas, by regularly checking out our frequently refreshed tariff news blog.

2025-04-12 00:11