Game Industry's $112B Boom: Are Tariffs Really Just a Speed Bump?

The headlines scream growth. Explosive growth. $112 billion by 2034! Asia-Pacific leading the charge. Mobile gaming is king. Digital distribution reigns supreme. And then, almost as an afterthought, a whisper: US tariffs had a "modest impact."

That’s akin to claiming that a flat tire on a Formula 1 racecar has a “modest impact” on race day. Undoubtedly, it doesn’t prevent the crash from happening, but damn it, it feels better to be the person still driving away after impact.

Let's be clear: claiming a "modest impact" is a dangerous oversimplification. It spurs the worst type of surface level analysis that overlooks the nuanced, dynamic, messy landscapes we know to exist on the ground, particularly in emerging markets. The report finds that hardware costs have risen due to tariffs by 10-25%. That percentage doesn’t tell the whole story. It buries the nuances.

"Modest Impact"? A Dangerous Oversimplification

Consider this: a 20% increase on a $300 console is a significant barrier for a gamer in South Asia, where average incomes are a fraction of those in North America or Europe. It’s not only the price tag, it’s the opportunity cost that’s at stake. That additional $60 might be food for the month, tuition for a kid, or lifesaving medication.

At least according to the report, digital distribution has been the silver lining for the downturn, holding an impressive 89.4% market share. That's great in theory. But what about the digital divide? What about the millions more who don’t have consistent high-speed internet access or affordable devices that can run the next digital blockbuster game? Are we simply writing them off?

Worry number two The move from console and PC gaming to mobile gaming, a change that the tariffs appear to have accelerated. And though mobile provides that amazing accessibility, it usually does so at the cost of richness and rigor. In so doing, are we losing the artistic integrity of gaming to get around trade barriers that don’t even seem to exist yet?

While the report addresses Asia-Pacific’s dominance, it misses the details of the South Asian countries’ struggle to keep up. We need to zoom in, get granular. Or what’s the effect on local indie game developers who can’t manage to keep up with the AAA studios? What of the retailers that depend on hardware sales? What of the gamers themselves, who are now being put in the position of choosing their passion and maintaining their livelihoods and housing?

South Asia: The Real Story Isn't Told

I’ve spoken to individual developers in India who are at their wits’ end. Rising costs and reduced access to markets are forcing them to push back project timelines, shrink their visions, or even consider exiting the business altogether. These aren’t just dollar signs on a spreadsheet; these are actual Americans pursuing their dreams and aspirations. Those experiences aren’t always reflected in these upbeat market analyses.

We need to ask ourselves: are we creating a two-tiered gaming world, where affluent gamers in developed countries enjoy access to the latest and greatest, while those in developing countries are left to scrape by with outdated hardware and limited access? Is that the future we want?

Throughout the report, the suggestion of blockchain-based games emerges as a diversification strategy. Here’s where my NFT royalties expertise comes in handy. Could NFTs offer a solution? Perhaps.

NFTs: A Glimmer Of Hope, Or Hype?

Now imagine a system where every in-game asset is a token that can be freely traded on an open, decentralized marketplace. This might eventually do away with existing, antiquated distribution channels, saving money and adding transparency in the process. Additionally, NFT royalties might present a secondary revenue source for developers so they can recapture some losses from tariffs.

We all know the reality, that the realistic NFT space is still in its infancy, full of scams and speculation. Let’s not go down that path. As an industry, we need to make sure that all of our NFT-based solutions are equitable and advantageous to all the players involved—not just a chosen few. The environmental impact of many blockchains is another legitimate cause for alarm.

It’s not a silver bullet, but it’s a conversation that is definitely worth having.

The gaming industry is booming, yes. But that boom must not come at the expense of fairness, equity and accessibility. We have to go deeper than just the surface level analysis and start getting to the root causes that are keeping developing markets perpetually behind.

The future of gaming depends on it. That $112 billion projection is super exciting—not an unqualified good!—but it doesn’t hurt if the benefits are shared globally and equitably. While some would consider tariffs as just a speed bump, for many it’s a brick wall. Join us in helping to break down that wall. The future of gaming depends on it.

Beyond the Numbers: A Call for Action

The gaming industry is booming, yes. But that boom shouldn't come at the expense of fairness, equity, and accessibility. We need to move beyond superficial analysis and address the underlying issues that are holding back developing markets.

This requires a multi-pronged approach:

• Policymakers need to re-evaluate trade policies and consider the impact on vulnerable economies. Protectionism might sound appealing, but it often backfires, hurting consumers and stifling innovation.
• Industry leaders need to invest in financial literacy programs and support local developers in developing countries.
• Gamers themselves need to be more aware of the challenges faced by their peers in other parts of the world and support initiatives that promote inclusivity.

The future of gaming depends on it. The $112 billion projection is exciting but means nothing if the benefits aren't shared globally and fairly. Tariffs might seem like a speed bump to some, but for others, they're a brick wall. Let's work together to tear down that wall. The future of gaming depends on it.