“Brace Yourself: Trump’s Tariff Strategy May Crank Up Video Game Prices, Experts Warn!”

Among the initial executive actions that President Trump mentioned on Monday following his inauguration was a new 25% tariff for Mexico and Canada, scheduled to take effect on February 1. A considerable portion of production infrastructure for video game discs is located in Mexico, so what will the implications be for the final consumer? Currently, it’s uncertain. Furthermore, it’s unknown if the order will even be executed. Nevertheless, Circana expert Mat Piscatella has now expressed his insights on how the recent tariffs could influence gamers, anticipating an overall increase in prices.

On social media, Piscatella indicated that he predicts a “notable decline” in the number of disc-based games launched in the US, considering that “a lot of that production infrastructure” resides in Mexico. Should companies proceed with producing discs, consumers will likely face higher costs, he stated. This increase is not limited to physical discs only. Piscatella also stated that he foresees an uptick in digital game prices as well.

While a digital game obviously lacks a disc, companies may still prefer to maintain price parity between physical and digital formats in light of tariff-induced price hikes, Piscatella noted. He acknowledged uncertainty over how this situation will ultimately unfold, asserting that his current stance is purely speculative. However, he emphasized, “This situation does not bode well for the physical video game industry.”

Piscatella mentioned that US-based video game firms might relocate production from Mexico back to the US, but this would necessitate “substantial investment.” This transition is unlikely, partly because expenditure on physical games in the US represents merely half of the levels seen in 2021 and continues to fall “quickly,” according to Piscatella.

Trump has proposed the possibility of instituting a 60% tariff on imports from China, which may have considerable consequences for video games and their hardware. However, many question whether this is realistic or even probable.

In addition to the price increases for video games that could result from potential tariffs, some industry insiders are speculating if the release of GTA 6 might spark an overall price hike in the manufacturer’s suggested retail price (MSRP) for games, potentially reaching $80 or higher. The latest price adjustment from $60 to $70 was well-received, according to experts, and another increase may be on the horizon.