US Gamers May Face Video Game Price Increases Due to International Trade Developments
International trade-related developments may mean US gamers will need to brace for some potential price increases. There has been talk of slapping a 25% tariff on imported goods from Mexico recently. The video game industry has expressed concern. A large portion of the physical video game sales in the United States are produced and imported from Mexico.
The Possible Price Increase for Physical Games
Industry analysts say these tariffs might come into play in terms of the price of physical game copies. If tariffs make it 25% more expensive to import games, retailers would likely have to pass at least some of that cost on to consumers. That may mean the price you see when you spot a new disc-based game on the shelf will increase significantly.
Will Digital Game Prices Be Impacted Too
That impact may not be confined to physical games. We could even see increases on digital game prices. Publishers and retailers frequently attempt to keep a consistent scale of prices between digital and physical versions. If physical is used for sale, and there are increased costs via tariffs, the prices for these digital games could up-vary proportionally to keep this balance. Standard edition games could hit or even surpass that $85 to $90 mark, especially those priced at $80 anyways due to the tariffs. Collector's editions will potentially have an even higher MSRP.
A Temporary Stay But No One Knows What’s Next
For now, a little bit of good news. An exceptions to tariffs targeting Mexico, tariffs on disc imports among them, is in place for now. Physical video game prices are unlikely to be touched by these proposed tariffs in the immediate term. That exemption is only for a month, creating a great deal of uncertainty about what happens afterward. The situation is fluid and subject to change quickly.
Industry Changes Over the Longer Term and Console Prices
It’s worth noting that the ongoing tariffs with China have similarly begun to factor into potential longer-term price increases in console hardware. News reports have indicated that some manufacturers have been moving operations out of China — Microsoft and Nintendo among them. Reorganizing supply chains is a slow process that can carry its own costs. Any increase in console hardware costs inevitably passes on to the consumer.
The Evolution of the Physical versus Digital
All this comes at a time when digital game distribution is already the primary method by which people play. Even physical games frequently need a download for updates and online features that are supported by the same digital infrastructure. Digital-only gaming could regain popularity and possibly make physical console games a niche market in the long term. Inflation rises the cost of physical media.
Crossing Fingers but Sharpening Pencils for Rising Prices
The prospect of higher prices is troublesome for gamers who still care about physical copies of games. The hope is that these tariffs don’t become an intractable reality. The alternative is an everyday situation where standard edition titles launch at $100. The industry-wide shift for AAA games to $70 already offers a form of buffer in the digital space. The prospect of more per-platform increases, or any for physical games, would cause a fair amount of bad news among gaming's wider audience.
