[Update] ESA Says Trump Tariffs Will Harm the Video Game Industry
by
William D’Angelo
, posted 8 hours ago / 1,189 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:
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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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