Following President Trump's announcement of a 25% tariff expected to take effect on February 1, concerns have arisen regarding its impact on the video game industry. Analyst Mat Piscatella predicts that consumers will face higher prices for both physical and digital games. The production of video game discs mainly occurs in Mexico, and if companies decide to continue manufacturing them, price increases will likely occur. Piscatella is uncertain about the overall outcome but warns that the physical market may suffer, especially as spending has been rapidly declining since 2021.
The implementation of new tariffs could lead to higher prices for both physical and digital video games as production costs rise due to manufacturing shifts.
Mat Piscatella forecasts a significant decrease in the release of disc-based games in the US as tariffs impact production infrastructures, especially in Mexico.
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