A word that is consistently rearing its head in 2025 is tariffs, and everyone is trying to understand the impact they’ll have across the world. If you’re someone who likes to play video games, you’re probably wondering if tariffs will affect software prices, and if so, to what extent?
While there’s still a lot that, frankly, no one actually knows, I’ve gathered all the useful information we have and the key things to keep in mind right now.
Will tariffs impact game prices?
Will software and video games be affected by tariffs?
It’s unlikely we’ll see digital games or software prices increase in the near future, but it’s complicated. Unlike physical goods, software and subscriptions like Xbox Game Pass aren’t directly affected by tariffs. However, tariffs could have ripple effects, affecting other parts of a game publisher’s business.
While a digital-only multiplayer game wouldn’t be subject to tariffs, thanks to digital distribution, games take materials to run. Developers need equipment like computers, servers, and more.
Physical hardware will be impacted, as we’re already seeing, with gaming editor Rebecca Spear tracking the impact of tariffs on gaming handhelds, while contributor Cale Hunt points out that you should buy a GPU soon.
Analytics firm Niko Partners notes that “the tariffs aren’t falling on games” but that instead, this trade war is causing “strong risk to the investment necessary for the recovery of the slaughtered games market,” in addition to impact upcoming gaming hardware like the Nintendo Switch 2.
All of this will make even digital-only games more expensive to develop and maintain. As such, it’s not impossible that a game could be more expensive simply due to rising costs brought about by tariffs in a roundabout way.
Indeed, the European Commission threatened to add tariffs to tech companies like Microsoft, Google, and Apple if the US were to proceed with its tariff increase on EU goods. However, since the US has proposed a 90-day pause, so has the European Commission … for now.
What do tariffs do?
Tariffs are a tax paid by a retailer or company importing a product, component, or material. A country’s government might impose tariffs on another country for numerous reasons. It could be to encourage domestic production, to help protect domestic workers and create jobs, or even just a temper tantrum designed to cause chaos.
Tariffs have surged in modern lexicon thanks to the actions of the Trump administration in the U.S., which has imposed massive tariffs on Chinese products, with smaller (but still relevant) tariffs on virtually every other country on Earth.
FAQ
How could tariffs possibly affect game prices?
While digital goods aren’t affected by tariffs, physical products are. This could potentially impact physical editions of games, including already-pricey collector’s editions.
Physical games have to be printed, which requires labor and materials. Different publishers use different manufacturing plants worldwide, meaning whether or not a physical game would be subject to tariffs (and if so, by how much) is subject to dozens of variables.
Will game prices go up anyway?
It’s entirely possible that we could see games get more expensive for reasons unrelated to tariffs. Nintendo’s upcoming Mario Kart World, a launch game for the Nintendo Switch 2, is $80 in the U.S, making it the first game to push that price point in recent years.
Many publishers use variable pricing, which means that different games are available at different prices depending on factors like the budget and perceived value.
Just as an example, here are the launch prices (in USD) for the standard editions for a handful of games published by Xbox Game Studios and PlayStation Studios over the last couple of years:
As you can see, not every game will be priced at the maximum “ceiling,” and this will be true of Nintendo, even with the company raising that ceiling higher.
At this time, Mario Kart World is Nintendo’s only $80 game in the U.S., but other companies could follow suit soon. Naturally, I’ll keep this updated with anything new I learn.
When will the tariffs end?
No one knows. It’s possible that most tariffs will end in a couple of months, or this could continue well into 2026.
It’s important to emphasize that this situation is extraordinarily volatile. Experts are confused, and details change before there’s time for analysis.
You can stay up to date on all the latest on tariffs and how it is affecting gaming, PCs, laptops, and more in our regularly updated tariff live blog.
