Trump Tariffs Could Cripple the US Gaming Industry

The Trump administration's tariffs on Canada, Mexico, and China are impacting the US gaming industry. Analysts warn that a 25% tariff on physical game discs produced in Mexico could lead to a sharp decline in physical game releases, pushing publishers towards all-digital strategies. Even if physical disc production continues, costs will likely be passed on to consumers, resulting in higher prices. Furthermore, with 75% of US consoles imported from China, the 20% tariff on imported goods could significantly increase hardware costs. This chain reaction could accelerate the industry's digital shift, but for consumers, it means higher game prices.