Girts Ragelis/Getty Images/CNET
If you’re feeling anxious or unsure about the upcoming expenses for goods, especially in the tech sector, you’re not alone.
Following the Trump administration’s tariffs, which have been subject to various changes and exemptions, many are struggling to keep up with the updates.
For gamers, it’s important to recognize that regardless of the tariff situation, the cost of your hobby is likely to increase.
Nintendo recently announced the Switch 2 console, with some games priced higher than usual at $80 for digital and $90 for physical copies. While these price hikes may be disappointing, it’s worth noting that game prices have only seen a $20 increase over the past two decades.
While tariffs may impact hardware costs, game prices themselves may not be directly affected. However, overall prices are expected to rise.
Brad Hendricks, CEO of Blind Squirrel Entertainment Inc., emphasized that developers and publishers are not raising prices to exploit consumers, but rather to keep up with rising costs in the industry.
There are several factors contributing to potential price increases in games. Let’s delve into them.
Tariffs and video games: What’s going on?
With ongoing discussions about tariffs, many gamers are wondering if they will soon be paying more for games. The impact of tariffs is expected to be felt on hardware prices, affecting products such as consoles from Nintendo, Xbox, and PlayStation.
While the tariffs on China could result in increased prices for products manufactured there, Nintendo’s shift of production for the Switch console to Vietnam may help mitigate price increases in the US during the current pause on reciprocal tariffs.
Physical games are produced in various countries, with some already facing tariffs. Digital games, however, are not subject to tariffs as they do not require physical imports.
Regardless of tariffs, Hendricks suggests that game prices need to rise to accommodate the growing development costs in the industry.
The difficult truth: Game prices likely need to come up
While the announcement of higher prices for the Switch 2 and its games may have been met with resistance, it’s important to understand the reasons behind these increases.
Inflation, recession concerns, and stagnant wages all contribute to the challenging economic landscape. Game developers are also facing rising costs in the industry.
Game development is a costly process, particularly for AAA games, which can have budgets ranging from $20 million to $200 million including distribution and marketing expenses.
Hendricks, drawing on his extensive experience in the industry, emphasizes the need for consumers to support game developers by acknowledging the rising costs associated with game development. Mendirikan sebuah permainan video membutuhkan tim seniman, programmer, desainer suara, tester QA, penulis, aktor, dan banyak lagi. Menjaga tim ini di AS menjadi semakin mahal. “Saya pikir ada perlu ada perubahan pola pikir konsumen,” kata Hendricks. “Karena beberapa pengembang terbaik di dunia saat ini sedang berjuang.” Girts Ragelis, an image contributor for Getty Images and CNET.