Tariffs on Mexico May Spell Doom for Physical Game Discs
Game publishers could completely stop making physical game discs owing to the 25% tariff on Mexico. Analysts warn that pricing for even the digital versions could increase, along with prices for hardw. The tariffs that came into effect on March 4 are targeted towards Canada, Mexico, and China, with Mexico seemingly being the major producer of these game discs.
- This shift towards digital-only games could lead to a seismic change in the gaming industry's business model, forcing publishers to rethink their distribution strategies and potentially disrupting the entire retail ecosystem.
- How will the decline of physical game disc production impact the long-term sustainability of the gaming industry, particularly for smaller, independent developers who rely heavily on physical sales?