Mexico tariff could lead to ‘fewer physical game releases and increased software prices’

A proposed tariff on imports from Mexico to the US could result in fewer physical game releases and higher software prices.

That’s according to Mat Piscatella, executive director of video games at market research firm Circana, who was reacting to tariff threats made this week by new US president Donald Trump.

After being sworn into 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 1 over illegal immigrants and fentanyl crossing into the US, Reuters reports.

“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,” Piscatella wrote on Bluesky.

If disc-based games do get made, the analyst said he expects increased prices for both physical and digital titles.

“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.”

Piscatella has said he expects the newly revealed Nintendo Switch 2 to sell over four million units this year in the US.

Circana plans to release a full 2025 outlook piece this week, after it publishes December sales data for the US market on January 23.