As tariffs impact various aspects of life, digital video games may serve as a refuge for consumers. The industry has already been shifting towards digital formats, minimizing costs associated with physical manufacturing and shipping. Analysts predict that while the price of digital software may remain stable, consumer spending could shift towards more accessible, free-to-play games due to increased everyday expenses. This suggests a potential decline in demand for premium titles, although popular franchises with strong player loyalty could still thrive amidst these changes.
In terms of software, PC gaming is now overwhelmingly digital, and physical versions are largely obsolete. We do not expect tariffs to significantly impact the price of video game software.
One of the big reasons for what we saw happen with the November elections was around the cost of everyday-spending categories like groceries and housing.
Because of this, Piscatella tentatively projects that the video game industry may see a drop in demand for premium video games.
Games with long and deep connections to their player bases could gain more ground.
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