![[Update] ESA Says Trump Tariffs Will Harm the Video Game Industry](/articles_media/images/esa-trump-tariffs-on-video-games-will-harm-everyday-americans-534802_expanded.jpg)
[Update] ESA Says Trump Tariffs Will Harm the Video Game Industry - News
by William D'Angelo , posted on 03 February 2025 / 2,741 Views
Update:
ESA has sent a modified statement to Forbes with different phrasing.
"Video games are one of the most popular and beloved forms of entertainment for Americans of all ages," reads the new statement. "Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industry’s significant contributions to the U.S. economy. We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector."
The tariffs that were set to go into effect tomorrow on Canada, Mexico, and China have now been "paused" in Canada and Mexico and remain under review.
Original article:
The Entertainment Software Association (ESA) in a statement sent to Kotaku has said Donald Trump's tariffs will harm the video game industry.
"Tariffs on video game devices and related products would impact Americans of all ages across the country," said the ESA.
"We urge the administration to consult with the private sector in a transparent process to avoid causing significant harm to everyday Americans and to one of the fastest growing entertainment sectors in the United States."
The ESA (video game industry trade group representing Microsoft, Sony, Nintendo, and others) calls for Trump to "consult" with companies before tariffs cause "significant harm" in a new statement shared with Kotaku:
— AmericanTruckSongs10 (@ethangach.bsky.social) February 3, 2025 at 7:31 AM
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Executive Director & Video Game Industry Analyst at Circana Mat Piscatella last month stated Trump's tariffs on imports from Mexico to the US could lead to increase game prices and a decrease in the number of physical games sold in the US.
"With 25% tariffs on imports from Mexico on the way, I can see a sharp downtick in the number of disc-based games that get released physically in the US, as much of that production infrastructure is in Mexico," said Piscatella at the time. "If they do get made, I expect higher prices both [physical and digital].
"I would, were this to happen, anticipate digital MSRPs to increase to remain at price parity with physical, but who knows. In any case, none of this is good for the physical video game market."
He added that "with significant investment" it would be possible to move production to the US. However, "annual US physical video game software spending is now half what it was in 2021 and declining rapidly. And this also wouldn't help when it comes to costs."
The ESA was founded in 1994 as the Interactive Digital Software Association and was renamed in 2003. It is the trade association of the video game industry in the US.
ESA members include the big three in gaming, Microsoft, Nintendo, and Sony, as well as the majority of third-party publishers. This includes Capcom, Electronic Arts, Konami, Bandai, Square Enix, Take-Two, Ubisoft, Warner Bros. Epic Games, and more.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Bluesky.
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News article that mentions both Video Games and American Politics...
I'm sure the comments will be very calm with well thought out opinions lol
No one mentions the ridiculousness of "price parity" when digital is a much larger slice of the pie? They're going to try and turn this into a profit opportunity while directing the blame elsewhere.
Exactly and I hate that they'll run with this excuse.
Even before this tariff, they were making up excuses for why we have to pay more, now this US tariff is going to see the rest of the EU being strung along to paying more, despite the fact that we're not the ones imposing said tariffs.
It's like any news is good news to them for being able to spin something where we have to pay more, and I hate it.
Trump just had a friendly conversation with the President of Mexico regarding the deployment of 10,000 Mexican soldiers to the border to combat the influx of fentanyl into the country. As a result, tariffs will be temporarily suspended for one month while the outcomes are assessed.
Don't like orange man and I dislike the tariff system in general (it creates distrust amongst trades that can span years if not decades), but let's not pretend like before this happened, we were fine paying our current prices, and what exactly has been injected into core gaming over the past 20 years.
Remember people, GTA is made by a Scottish Studio, technically the game is being imported, Rockstar are going to charge $100 for sure. ;-)
Trump was saved by god to make America great again.
... The real question is whether Tariffs will impact both Physical and Digital or just Physical only... And if it only impacts Physical, then expect a faster digital transition.
What tariffs? Nobody read the news? Trump is all talk, always was.
The unjustified raise of the games' prices those last few years did hurt everybody even more.
I don't think the retail MSRP on one or two consoles compares to hastening the death of physical game ownership for the entire industry.
A general rise is costs of games was going to happen and honestly, I think people need to get over that one, it's weird how many people forget the mid 90s, when SNES cartridges cost upward of $90. CDs and later digital did well to reduce costs but game development still went up as it normally would. Even that $50 from 30 years ago should be $80 now and yet we don't pay that.
Yet the talk of rising more in a single gen is weird. Sony took the bullet this gen because games were getting expensive but that was decided and announced before Covid and huge inflation rises. Now, the talk is Rockstar rising costs of GTA6 not because of inflation but because they can.
I hate him so much. Hate is not a strong enough term
Agreed. I despise him and his unelected chancellor.
Elon is an apartheid space Karen who makes the world worse every day.
I'd use despise.
Abhor is also good, sounds fancy. Same goes to Abominate.
I'm Canadian and I hate him even more.
I'm a Brazilian that can end up deported... so yeah, i'm one step ahead of you, i think.
I wonder If i can develop some kind of new emotion If i get deported. Some kind of "super hate"
Caralho, sinto muito mano, espero que de tudo certo ai e nao chegue nesse ponto.
Valeu parça, no momento tá sussa.
You gave me a good laugh, thank you.
Trump best president since reagan. And Elon is humanity savior.
Essay Pro