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Analysts are warning that the Trump administration's recently implemented tariffs on Canada, Mexico, and China could lead to price increases and supply issues for video game software and hardware in the United States.
The effects could be particularly pronounced for physical game discs, which are now overwhelmingly produced in Mexico. A 25 percent tax on discs shipped in from Mexico could lead to "a sharp downtick in the number of disc-based games that get released physically in the US," Circana analyst Mat Piscatella said on social media.
"It wouldn't surprise me to see physical games that would be subject to tariffs simply not get made, with pubs moving to an all digital strategy," Piscatella added recently. That would accelerate a trend that has been building for years, making disc-based releases a relative market niche.
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The effects could be particularly pronounced for physical game discs, which are now overwhelmingly produced in Mexico. A 25 percent tax on discs shipped in from Mexico could lead to "a sharp downtick in the number of disc-based games that get released physically in the US," Circana analyst Mat Piscatella said on social media.
"It wouldn't surprise me to see physical games that would be subject to tariffs simply not get made, with pubs moving to an all digital strategy," Piscatella added recently. That would accelerate a trend that has been building for years, making disc-based releases a relative market niche.
Read full article
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