Tom Ivan
speaker
190 appearances
1 recordings
1 series
first heard Jan 2025
last heard Jan 2025
Tom Ivan’s voice in public audio — every appearance, attributed to the second.
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Number three, Mexico tariffs could lead to fewer physical game releases and increased software prices. This is Tom Ivan of EGC. A proposed tariff on imports from Mexico to the U.S. could result in fewer physical game releases and higher software prices.
That's according to Matt Piscitella, executive director of video games at market research firm Circona, who was reacting to tariff threats made this week by new U.S. President Donald Trump. I like how he says, reacting to tariff threats made this week. Tariff threats made in the first three hours of being in office.
After being sworn into the office on Monday, Trump said his administration was reviewing existing trade deals with neighbors Canada and Mexico, as well as China. He said he was considering imposing 25% duties on imports from Canada and Mexico on February 1st over illegal immigrants and fentanyl crossing into the U.S., Reuters reports.
Quote, 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 U.S. as much of that production infrastructure is in Mexico, Piscatello wrote on Blue Sky. If disc-based games do get made, the analyst said, he expects increased prices for both physical and digital titles.
Quote, I would, were this to happen, anticipate digital suggested retail price 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. End quote.
About to get real expensive. You know, this is one of the big conversations, obviously, with the switch we were talking about, right? Of like, okay, cool. You're announcing this, but what's the price going to be? Well, what's the price going to be if all of this actually happens, right? And that was before Trump once again said it yesterday upon entering the Oval Office.
I think that is the reality of this. And again, with President Trump, lots of times it's posturing. It doesn't actually happen. Even this, where it was like he's signing the executive orders and people are asking him. He's like, yeah, we're thinking about putting it into place in February. It's like... He's thought about a lot of things for his total of four years, let alone to get to this point.
So does it actually happen on February 1st? Nobody knows, but it is a real threat. It is a real concern, and it really would, I think, impact video games quite dramatically.
And I think, of course, yeah, you know, tariffs were such a big part of the election, talking about them coming in, right? Where do people understand what they really are and da-da-da-da? Obviously, the idea of a tariff is to...
uh push manufacturing back to america or push products back to america right in terms of rather than buy your lumber from canada buy your lumber from america because it'll be cheaper in america than it will be from canada the problem with all of this and you can especially in matt and some of his follow-up blues guys brought this up when somebody asked about well couldn't this just bring disc manufacturing back to america and he's like i mean no but yeah let's investigate that for a second right now i'm going away from matt just talking about greg right you're talking about
An infrastructure plan that doesn't exist.
So to get any of this spun up, you're talking about years? Yeah. I mean, probably before Trump is even... Probably after Trump's out of office, right? I mean, he's done with his next four years if he decides to leave.
It's this idea that you're not going to be able to make a manufacturing pipeline in America to do this in the same way, let alone, let's talk about this specific instance, where physical games are dying and have been dying. So why would anyone commit to it? You would hope as the consumer, and this sucks for people who like to collect physical games, as the consumer that you would say, okay, well...
Fuck physical, just make it all digital, keep the prices where they are. But again, this is all a thing where all of these companies that make video games, we have seen day and day and day and time and time and time, week and week, year, year, year, are just trying to make as much fucking money as possible.
And I assure you that everyone in America, every one of these corporations that deals with here are... On one hand, fuck, this sucks. But on the other hand, excited that they get to, hey, we can increase our prices and people can't get mad at us anymore. Oh, it's tariffs. Yeah. But you're this company. Oh, but our supplier on this end does use that. So this is why it's going up.
Everything's going to go up because they have a green light suddenly be like, oh, fucking tariffs. I'm sorry. It sucks.
I mean, how much did shit go up during COVID and then just never came back down? Yeah. You know what I mean? It used to be so cheap to fly to LA. Not anymore. And it never will be again. Like, great, cool. That sucks. Kevin, what do you want to say?
Oh, the lightning plug, we're going to go USB-C?
Yeah.
Yep. So we will wait and see how this goes. But yeah, there is this whole domino effect of what is this going to do to games. Matt talking, of course. If you're not following Matt on whatever you follow, go follow him because he's so insightful.
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