38 percent of game industry leaders are feeling the impact of U.S. tariffs
US-based tariffs are impacting the expenses, revenue, and financial decisions of 38 percent of business leaders. The data comes from the State of the Game Industry 2026 report, an annual survey conducted by GDC Festival of Gaming.
The metric is based on a question put to 200 industry executives, investors, and business and finance professionals, who were asked whether last year's tariffs have taken a toll.
This is in reference to the series of tariffs issued by the US government's executive branch in 2025, which affect goods coming in from other countries. This includes video game hardware and the products needed to manufacture them.
Out of the total respondents, about 38 percent said that the tariffs are impacting their expenses, revenue, or financial decisions. 39 percent said there has been no impact, while 23 percent were unsure. According to the report, the numbers were similar inside and outside the United States.
Sony, Nintendo, and Microsoft all contended with US-based tariffs in 2025The Entertainment Software Association publicly warned the world in February 2025 that the US-based tariffs would have a "negative impact" on the video game business. Major publishers certainly seemed to agree. During a call with investors in May 2025, Sony said that it was considering whether to "pass on" the cost of the US tariffs to customers via hardware prices, including the PlayStation 5 and affiliated devices. At the time, the concern was related to the 145 percent tariff imposed on China, where Sony manufactures the majority of its hardware. The cost of the tariffs was projected to have a 100 billion yen impact—around $680 million at the time.
In addition, president and CEO Hiroki Totoki answered a question regarding the possibility of moving hardware manufacturing to the US, saying that "these hardwares [sic] of course can be produced locally," and that "it would be an efficient strategy."
"But PS5 are [sic] being manufactured in many areas, whether it's going to be manufactured in the US or not it needs to be considered going forward. We‛re not in such a critical situation," the CEO added at the time.
Then, in August, Sony announced a US-exclusive price increase for its entire PlayStation 5 console lineup. SIE global marketing vice president Isabelle Tomatis didn't mention tariffs specifically. Rather, Tomatis said that, similar to "many global businesses," Sony continues to "navigate a challenging economic environment."
The announcement came three months after Microsoft announced its own price increase for consoles and controllers in all eligible markets worldwide. In a similar fashion, Xbox didn't mention the tariffs, but the company alluded that the changes were made with "careful consideration given market conditions and the rising cost of development."
All the while, pre-orders for the Nintendo Switch 2 were delayed, initially scheduled to open on April 9, 2025. In a brief statement, the company said that this decided in order to "assess the potential impact of tariffs and evolving market conditions."
Then, in August, Nintendo raised the price of the original Nintendo Switch hardware, alongside certain Switch 2 accessories in the United States, to account for shifting "market conditions." The company didn't provide a more specific reason for the price hike, but the news arrived one day after the US imposed additional reciprocal tariffs on a range of countries. This included a 20 percent levy on Vietnam, where Nintendo has transferred most of its hardware production.
While the Switch 2 hardware pricing has remained unchanged since, Nintendo did warn consumers at the time that certain adjustments "may be necessary in the future."
Game Developer and GDC Festival of Gaming are sibling organizations under Informa Festivals.
