January 21st 2025.
Are you a fan of gaming? Well, prepare to dig even deeper into your pockets because things are about to get even pricier. The physical video game market might be on its way out sooner than we thought, as the US President Donald Trump is threatening to impose tariffs on Mexico.
As we all know, Trump loves to make headlines and he's already making waves in his second term as president by discussing tariffs on various countries, including Mexico and Canada. This could have a major impact on the video game industry, causing prices to skyrocket.
In the past, Trump has also threatened tariffs on China, which had the gaming industry in a panic. It was predicted that this move would only speed up the decline of physical games, with experts stating that consoles and games would become even more expensive. Although nothing has been confirmed yet, it seems that the tariffs on Mexico and Canada are definitely happening.
Analyst Matt Piscatella believes that this latest development will result in fewer physical game releases in the US. He points out that much of the production infrastructure is in Mexico, so the tariffs will greatly affect the production and release of physical games. This could lead to a sharp decrease in disc-based games and further incentives to increase prices for both physical and digital games.
But wait, there's more. Piscatella also mentions the possibility of moving production to the US, but even that wouldn't solve the issue. The US has seen a significant decline in physical game spending and that trend is expected to continue. This means that even if production is moved to the US, it won't make much of a difference for consumers.
It's uncertain if these tariffs will have a ripple effect on the gaming market in other countries, but it's definitely not good news for consumers or preservationists. Mexico's president, Claudia Sheinbaum, has responded to Trump's threats by stating that they will defend their sovereignty and that it's important to rely on facts rather than rhetoric.
In addition to the tariffs on Mexico, there are also talks of tariffs on China. This is dependent on whether or not Chinese company ByteDance agrees to sell at least half of TikTok's ownership to a US company. This is a requirement for Trump's removal of the TikTok ban, which was signed off by the Biden administration.
Trump's inauguration on January 20 has been a hot topic, with debates over whether or not Elon Musk did a Nazi salute stealing the spotlight. Amidst all of this, there's also speculation that the lack of a price point for the Switch 2 could be due to Nintendo waiting to see if the tariffs go through.
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In conclusion, things are not looking good for the physical video game market, and we can only hope that things will change for the better. Until then, let's keep our fingers crossed and stay updated on the latest developments.
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