I never thought I would see the day when people started looking to Ferris Bueller for lessons on economics (see video below) but these are the times that we are in. People are using this video as a quick explanation of what tariffs are and how the Smoot-Hawley Tariff Act helped deepen the Great Depression. We have historical record of what overtly high tariffs did last time and yet the administration has decided, as of this writing, to keep going ahead with them. I want to emphasize "as of this writing" because no-one is quite sure where the administration plans to go with tariffs in the immediate future.
Case in point, Portal Games, which sent an email discussing some of the actions the company plans to take in response to American tariffs, and notably advises American customers who want to back their upcoming release Race for Berlin to put in a $1 placeholder pledge until the company determines if the administration will change its mind about how much tariffs should be:
Bohemians was sent to print this week. I lowered the print run to 60% of planned print run so we don't risk bankruptcy with tariffs when games reach U.S. customs,
Age of Galaxy is ready in China. I asked the manufacturer to not ship it to the U.S. yet. We are risking missing Gen Con release, but this additional 145% cost added to the whole sprint run is devastating. I have two, maybe three weeks window and then I miss Gen Con with the game,
Race to Berlin on GameFound started this week. We have 200 backers as of now. For the U.S. players we decided to not collect regular pledge due to uncertainty with final tariffs and asked them to put $1 Pledge in and see how the things develop later. We don't want to leave them behind, but at the same time I am responsible and respectful - I am not going to charge you $40 for a game that may cost you $200 later with crazy tariffs added.
Meanwhile Arcane Wonders, Japanime Games and Winning Moves have all announced price increases, Winning Moves increasing the price on most of its games by a couple of dollars while the other two companies have not indicated the exact amount of the increase (see "Publishers Warn Of Price Increases").
Southern Hobby Distribution also sent out a notice that the company may change prices as well. This sentence in the email attracted quite a bit of attention from retailers: Products previously solicited at pre-tariff pricing will be subject to reassessment. Store owners have expressed concern that Southern Hobby could retroactively change prices on pre-orders without allowing retailers to adjust.
Meanwhile Greater Than Games, best known as the publisher of Sentinels of the Multiverse and Spirit Island, was shut down by its parent company Flat River Games, which cited the tariffs as the primary reason for closing up the company (see "Greater Than Games a Victim of Tariffs"). The company follows Final Frontier Games in closing shop, though Final Frontier’s shuttering is due to getting hit with higher-than-expected shipping costs during the pandemic and non-payment of a large invoice by fellow boardgame publisher CMON, the company said.
As Portal Games' Ignacy Trzewiczek says, "We're expecting some turbulence ahead, so we kindly ask that you return to your seats and fasten your seatbelts."
Comments? Send them to castleperilousgames@gmail.com.
The opinions expressed in this column are solely those of the writer, and do not necessarily reflect the views of the editorial staff of ICv2.com.