Importance Score: 65 / 100 🔴
Concerns over rising expenses for consumer goods, particularly in the technology sector, are widespread among consumers. If recent trade policies and fluctuating tariffs have left you uncertain about the future cost of tech, you are not alone. For video game enthusiasts, the situation presents a clear picture: regardless of ongoing trade discussions, gaming, as a hobby, is likely to become more expensive.
Nintendo’s recent unveiling of the Switch 2 console included price points exceeding typical expectations, with digital games at $80 and physical copies at $90. However, is this price surge genuinely surprising? Reflecting on gaming history, early PlayStation titles cost around $50 two decades prior, whereas current generation games average $70. This modest $20 increase over two decades contrasts sharply with price escalations in other tech sectors.
While tariffs may predominantly affect hardware expenses, the price of games themselves may also see indirect impacts, contributing to an overall increase in gaming costs. Brad Hendricks, CEO of Blind Squirrel Entertainment Inc., emphasizes that price adjustments by developers and publishers are not attempts to exploit consumers. He stated, “Maintaining a $60 price point for 10 to 15 years was remarkable, but the economic reality is that operational costs have risen across the board.”
Blind Squirrel Games, known for its work on titles such as BioShock: The Collection and contributions to major franchises including God of War (2018), Avowed, and New World, offers a perspective grounded in industry experience. Several factors are contributing to potential increases in video game pricing, which warrant closer examination.
vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
Tariffs and Video Games: Understanding the Impact
A primary concern for gamers is the impact of tariffs on game prices. The question arises: Will tariffs lead to increased spending on video games? The answer, according to industry experts, is nuanced.
“Tariffs will undoubtedly impact hardware costs,” states Hendricks. “Consequently, manufacturers like Nintendo, as well as Xbox and PlayStation, and PC hardware producers, will likely need to raise prices.” This suggests that sustained tariffs, such as a 145% tariff on goods from China—a major manufacturing hub for PlayStations and Xboxes—will directly translate to higher consumer prices for gaming consoles.
However, Nintendo’s strategic shift of Switch console production from China to Vietnam in 2019, combined with tariff pauses for countries other than China, might soften the impact on Switch 2 prices in the U.S., at least temporarily. This factor could explain Nintendo’s decision to postpone preorders for its new console in both the U.S. and China.
The manufacturing origins of physical games vary, leading to differing tariff implications:
- Mexico, a significant producer, faced a 25% tariff earlier this year.
- PlayStation 5 games are produced in Austria, an EU member, subject to a baseline 10% tariff, at least for now.
- Nintendo games primarily originate from China, potentially making Switch 2 game prices more susceptible to tariff impacts.
Digital games, lacking physical import components, should theoretically remain unaffected by tariffs.
Nonetheless, Hendricks points out that price increases for Nintendo games were anticipated irrespective of tariffs, citing broader industry pressures. He suggests that industry-wide game price adjustments are necessary to offset escalating development expenses. “Even before tariff discussions surfaced, there was considerable internal dialogue within the industry about when publishers would initiate price adjustments,” he noted.
Currently, new AAA game titles retail around $70 before taxes. Hendricks argues that to maintain player expectations for advanced graphics, innovative gameplay, and features, consumers need to accept price increases as a form of industry support.
Higher Game Prices: An Unwelcome but Necessary Shift
The announcement of the Switch 2’s elevated price, coupled with increased prices for both physical and digital Switch games, and a paid walkthrough of Switch features, triggered negative reactions. This response is understandable, as consumers generally resist price increases for their leisure activities. Persistent inflation and recessionary concerns have amplified economic anxieties, while tariff uncertainties have contributed to market volatility.
Moreover, stagnant federal minimum wages since 2009, at $7.25, constrain disposable income, making additional expenses for hobbies like gaming particularly burdensome. Therefore, consumer frustration over potential game price hikes is justified.
Simultaneously, developers across the gaming industry are facing rising operational costs. The gaming landscape includes three primary categories:
- Indie Games: Developed by individuals or small teams, with limited scope, primarily digital distribution, and minimal tariff impact.
- AA (Double-A) Games: Produced by mid-sized studios with moderate budgets.
- AAA (Triple-A) Games: Developed by major publishers like Ubisoft and Activision, involving significant budgets.
Game development, particularly for AAA titles, is a costly endeavor. Hendricks estimates that AAA game development budgets often start between $20 million and $60 million, excluding marketing and distribution expenses. “A $100 million budget can easily escalate to around $200 million with distribution, marketing, and other associated costs,” he explained.
Hendricks, drawing on over three decades of industry experience, offers insights into game development complexities and studio management, including talent acquisition. Creating a video game necessitates diverse teams of artists, programmers, sound engineers, QA testers, writers, actors, and numerous other specialists. Maintaining skilled teams, particularly in regions like the U.S., is becoming increasingly expensive.
“A shift in consumer mindset is crucial,” Hendricks asserts. “Many leading game developers are currently facing financial pressures.” While publishers ultimately set game prices, they hesitate to raise them due to fear of consumer backlash. However, to sustain the creation of innovative and immersive gaming experiences, gamers may need to accept price adjustments to support the studios driving these advancements.
Anticipating Game Price Hikes
Beyond Nintendo’s recent adjustments, no other major publishers have announced explicit price increases. However, this scenario is likely to shift with the upcoming release of Grand Theft Auto 6.
“The industry is collectively watching to see what price point GTA 6 will establish,” Hendricks commented. Developer Rockstar Games is positioned to set a higher price precedent, as the title’s anticipated popularity ensures strong sales regardless of cost.
GTA 5, launched in September 2013, stands as one of the best-selling video games ever, with over 210 million copies sold by February 2025, according to Statista. With the Nintendo Switch 2 launch expected around June 5th, and GTA 6 anticipated later in the fall, a broader increase in game prices across the market seems imminent following these key releases.
Hendricks suggests that if Rockstar sets a price for GTA 6 at $129, $179, or even $200, as some predictions indicate, it could pave the way for other publishers to implement similar price levels.
Strategies for Affordable Gaming in 2025 and Beyond
Managing budgets for leisure activities, especially costly ones like gaming, can be challenging. Despite potential price increases, many gamers will likely continue purchasing new titles. Even if GTA 6 approaches the $200 mark, enthusiasts may still consider purchasing it.
Increased prices may encourage more mindful gaming purchases. Gamers might become more selective, purchasing fewer titles at launch but still acquiring desired games when financially feasible. Consider these strategies to mitigate the impact of rising game costs:
Leverage Credit Card Rewards Programs
Utilizing credit card points can effectively reduce gaming expenses. However, avoiding credit card debt for game purchases is crucial. For example, rewards points can offset the cost of anticipated titles like Assassin’s Creed: Shadows, Avowed, and Kingdom Come Deliverance 2.
Accumulating points for $70 games requires time and consistent spending, but the savings justify the effort. Planning game purchases in advance simplifies expense management. Consider using credit cards strategically. For instance, the Blue Cash Preferred® Card from American Express for essential purchases, the Chase Sapphire Preferred® Card* for dining and travel, and the Wells Fargo Active Cash® Card* for general spending. If a desired game exceeds available points, reducing discretionary spending can free up funds.
Responsible credit card usage is essential. Introductory 0% APR periods on some cards can be beneficial, allowing balance paydown without accruing immediate interest. Careful financial management is key.
Explore Buy Now, Pay Later Options
Buy Now, Pay Later (BNPL) plans often split payments into four installments over a month, though terms vary. Rita-Soledad Fernández Paulino, a personal finance coach, advises caution. “BNPL programs carry risks—missed payments can lead to fees and credit impacts. Carefully review terms and assess if the purchase justifies the financial commitment.”
Fernández Paulino acknowledges that financing enjoyable expenses is common. “If video games bring joy, using financial tools is acceptable, provided it’s done mindfully.”
Integrate Gaming into Your Budget
Anticipating desired game releases aids financial preparation. Establishing a sinking fund – a dedicated savings account for games and hobbies – helps pre-allocate funds. High-yield savings accounts can accelerate fund growth through earned interest.
However, sometimes restraint is the best strategy. Prioritize essential financial needs like emergency funds before discretionary spending on games and consoles.
Consider Used or Refurbished Games
Reduce game costs by purchasing used games or trading in unused consoles and games for store credit. While trade-in values might be lower than initial purchase prices, decluttering and reducing costs are beneficial.
Avoid succumbing to FOMO (fear of missing out). Prioritize playing purchased games thoroughly. For instance, the three games mentioned earlier offer substantial playtimes (60-70+ hours). After completing these, consider acquiring the next desired title, possibly Doom: The Dark Ages, while accumulating points to offset costs.