PlayStation 5. Source: Sony The US government has introduced new tariffs on imports from China, Canada and Mexico, which could have a significant impact on the video game industry. Consoles, accessories and physical copies of the games are expected to rise in price, and editors could be passed to digital formats. This is what we know on March 4, 2025, the following rights entered into force: 25% on imports from Canada and Mexico and 20% on goods from China. Since the majority of video consoles are manufactured in China and the physical copies of the games are printed in Mexico, these changes could have a significant impact on prices for US consumers. Analysts predict that the cost of new tariffs will be impact on customers, which will result in higher prices. According to Matt Piscatella, a Circana analyst, the physical copies of the games could cease to occur due to the increase in costs. According to him: “I would not be surprised that the editors would go to a totally digital strategy.” The physical games market is already in decline, and the new tariffs could be the last blow for this segment. It is possible to produce discs in the US or in other countries, but due to the decrease in demand, it may not be economically viable. According to Jonathan Ahmad, from Niko Partners, about 75% of the game teams are imported from China. Although some companies have already begun to transfer the production to Southeast Asia, this process will take time. It remains to be seen how these changes will affect the long -term strategy of companies and the availability of physical copies in the future. Source: @matpiscatella.bsky.social

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