New U.S. tariffs threaten physical game sales

The Trump administration has introduced new tariffs on imports, including a 25% tariff on products from Mexico and a 20% tariff on goods from China. These tariffs could raise prices for consoles and accessories, impacting physical game sales. Analyst Mat Piscatella warns that increased production costs may lead some companies to stop producing physical games altogether. He noted that many developers are already shifting production out of China and Mexico due to these tariffs. Nintendo's president, Shuntaro Furukawa, stated that the company is preparing for the tariffs' effects but expects minimal impact on their financial results. Unlike in 2019, there has been no unified response from major game companies to seek exemptions from the new tariffs.