Even if you have been living under a rock recently, the chances are that you have heard some news and opinions about Trump’s Tariffs. While they seem to be on a 90-day hold right now, it can’t hurt to assess the impact we might feel should they go ahead as planned.
Disclaimer: As much as we at Cloud Dosage like to keep the sanctity of gaming free from politics, some things are worth talking about despite the potential risk of discourse and anger. So with that in mind, I will try my hardest to keep this piece free of any political opinions, biases, and jabs. As difficult as that may be.
What are trade tariffs?
Trade tariffs are taxes put on goods imported from other countries. Imagine you’re buying a new gaming mouse made in the USA. If there’s a tariff on it, the price in UK shops will be higher. That extra cost is the tariff.
Governments use tariffs to protect local businesses. By making imported mice more expensive, people might buy British-made ones instead. But if the USA then puts tariffs on British-made keyboards, it could mean fewer people in America buy them. It’s a balance between helping local industries and keeping prices fair.
What About Gaming?
It is always hard to answer such a question directly without knowing your purchasing values. But in this instance, America is set to increase tariffs for almost every country you can think of. It is hard to imagine anyone won’t be affected. You may have a device that is assembled in the US by a US company. But it may use processors made in China or metal from Kazakhstan. Maybe it has components made out of copper from Peru.
You get the idea. Almost every product we purchase today has some connection to trading with other countries. So, it is likely that all these products, including game consoles and accessories, will see an increase should the tariffs go ahead.
Will It Affect Me?
While I imagine that most people reading this already have their console of choice, the mere fact you are reading this says that you are more than the average gamer. As such, you are likely to purchase a refreshed console, PC component, new controller, or maybe a headset in the not-so-distant future.
The cycle of game consoles means that console gamers will be hit the least hard. On the other hand, PC gamers are forever upgrading and swapping out components. So they will likely be hit the hardest.
Those poised to purchase the recently announced Nintendo Switch 2 are surely waiting with bated breath.
And whether you are Team Console or Team PC, it could be bad news for those who love to own a physical copy of the game. Mexico produces the lion’s share of gaming discs for the world, and they are set to see a 25% tariff. This will no doubt see an increase in the recommended retail price of physical discs. And the Switch cartridges? They are made in Japan, which has a 24% tariff.
To The Cloud!
Well, slow down there, Sonic. Yes, it makes sense logically that if the price of hardware and physical games skyrockets, there is an increasing incentive to try cloud gaming. Cut free the tether to hardware costs and explore games without the painful price point. With a few pounds or dollars and a Bluetooth controller, you are ready to go. The same applies if you have a low-spec PC or laptop. The Cloud enables you to play games that may otherwise be out of reach without the need to purchase new hardware. Whether that be a new processor, graphics card, or console.
That said, we all know that the gaming industry makes some nonsensical moves at times. All eyes are on digital downloads. We have all seen it and scratched our heads at a digital game that costs the same or sometimes more than a physical game. So, as the price of physical games is set to rise, expect digital to follow suit. While I will die on the hill of Cloud Gaming being the way to play, don’t expect the clouds to be exempt from the tariffs. I am certain we will feel the sting in one way or another.
We cloud gamers can avoid this to some extent simply by not purchasing the games. While the likes of GeForce Now et al. require purchased games in your own library, there are alternative ways to play. Enter subscription services.
Now I know there are issues here, and I can see some faces cringing as I type this. But given the value for money that gaming subscriptions such as Blacknut and Xbox already offer, when the cost of buying games surges ever closer to $100 for a standard game. That value proposition is even stronger.
And in the future?
Clearly, we can see that in the immediate future, cloud gaming will more than likely save money compared to conventional gaming. However, as we look further beyond the coming months, it will eventually catch up to the clouds. We may see cloud gaming as this ethereal thing in the airwaves requiring no hardware. The truth is, there is a large amount of hardware all over the globe that runs the games for us. That’s right, the often-forgotten server farms are out there working away in the back to keep gamers happy.
Just like Shadow are doing right now, these servers and hard drives are going to be upgraded or replaced at some point, right? And that’s not the same as me or you upgrading a GPU to the latest release. No. We are talking about a shopping spree of millions of dollars. When all is said and done, gaming is a business. So, the cost of replacing the expansive hardware, that’s going to be passed on to you and me; the consumers.
Stay Humble, My Friends
There you have it. My predictive glimpse into a post-tariff future in the world of gaming. It may be easy to sit there looking smug right now. But try to remember, in the long run, it will affect us all in some way, big or small.
Until then, keep gaming, keep smiling.
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