Industry analyst Mat Piscatella from Circana (formerly NPD) commented on the impact of Donald Trump’s wall tax policy on the gaming industry in the United States. He anticipates that the cost of disc-based games will increase due to the added tariff on game production in Mexico. This, in turn, will lead to higher prices for both physical and digital games, as per the price parity policy where physical and digital games must be priced equally.
Moreover, the policy is likely to decrease the number of physical game collectors and could potentially mark the end of physical game sales altogether. The prospect of relocating game manufacturing facilities to the US, as desired by Trump, seems challenging given the gradually shrinking market. Moving factories for tax benefits may not outweigh the costs involved.
Most recent developments show Trump delaying the increase in tariffs on Mexico by a month.
TLDR: The imposition of a 25% tariff on imports from Mexico could lead to higher prices for disc-based games in the US and a decline in physical game releases, posing challenges for the gaming industry.
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