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Import tariffs may accelerate the death of physical video games | Most game discs are made in Mexico
Analysts predict that a 25 percent tariff on goods imported from Mexico would substantially affect the U.S. retail console game market. Since Mexico plays a crucial role...
The big picture: Although the Trump administration just announced a one-month delay on most imports from Canada and Mexico, the eventual resumption of tariffs on Mexican goods could significantly impact the production of physical video games. While video game discs sold in the U.S. were once manufactured domestically, analysts Mat Piscatella of Circana and Daniel Ahmad of Niko Partners note that much of the industry's critical production infrastructure has since moved to Mexico. Given the ongoing decline in retail game sales, many publishers may see little incentive to make that investment – further reinforcing the industry's gradual move away from physical media.
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