Due to new tariffs, many more physical game discs may “simply not get made”
1 min read
Summary
Tariffs on Canada, Mexico, and China by the Trump administration will mean higher prices and supply issues for video games and their hardware in the US.
Physical game discs, predominantly manufactured in Mexico, will be hardest hit with a 25% tariff likely to result in a decline in the number of physical game releases.
Games that are subject to tariffs may not be produced physically at all, with publishers moving to digital releases, an analyst has said.
This would accelerate the move to digital gaming, which has been the trend in recent years.
Domestic production of physical discs could move back to the US, but would require significant investment, while price increases would probably have to be passed on to consumers by disc makers.
A 25% tariff is also likely to be added to consoles manufactured in China, which accounts for 75% of all consoles sold in the US.
