Proposed 25% Tariffs on Mexican Imports Could Raise Video Game Prices

Analysts predict higher costs for both physical and digital games in the U.S. if tariffs are enacted in February.

President Trump has proposed a 25% tariff on imports from Mexico, set to take effect February 1, which could significantly impact video game production costs.
Analysts, including Mat Piscatella of Circana, predict a decline in physical disc-based game releases in the U.S. due to Mexico's role as a major production hub.
If physical game prices rise due to tariffs, publishers may also increase digital game prices to maintain parity between formats.
Shifting disc production to the U.S. is technically possible but unlikely due to declining physical game sales and the high investment required.
The proposed tariffs are part of broader trade policy changes targeting Mexico, Canada, and potentially China, with uncertain outcomes for the gaming industry.