Trade War Uncertainty Threatens US Board and Card Game Publishers

Strategic Insights -

Benjamin Ho and Johann Thiel's weekly game nights in Brooklyn's breweries have been disrupted by the escalating trade war between the US and China. Most of the components for their favorite board and card games, such as feudal Japan-themed strategy games and Batman-themed card games, are made in China. Tariffs imposed by President Trump have forced at least two prominent publishers to curtail production and cut staff, while others struggle to meet holiday season demand. The US board and card game industry, which employs fewer than 10 workers at virtually all independent publishers, faces an existential threat.

Key Takeaways:

  • At least two prominent publishers, including Cephalofair Games and Japanime Games, have curtailed production and cut staff since April due to tariffs imposed by President Trump.
  • Several other publishers are struggling to meet holiday season demand, with some having to leave shipments at ports in China for several months.
  • The US board and card game industry employs fewer than 10 workers at virtually all independent publishers, making it vulnerable to economic disruptions.
  • Tariffs have increased production costs, forcing publishers to either raise game prices or cut staff to remain competitive.
  • Domestic manufacturers have been unable to produce high-quality components due to limited access to materials and supply-chain sophistication.
  • Large game companies like Hasbro and Mattel have accelerated efforts to move production elsewhere, while smaller publishers face significant challenges in adapting to changing tariff policies.
  • Some companies, such as ASM Games and Stonemaier Games, have found ways to offset tariffs by reducing packaging costs or offering tariff-offset gift cards to customers.

Statistics:

  • 20% of the game publishers who typically attend the Game Manufacturers Association convention in Columbus, Ohio, were no-shows in June due to lack of product.
  • 10,000 copies is a typical print run for board games.
  • 50% is an estimated increase in game price due to tariffs.
  • $1.2 million is the value of product left at a port in China for Cephalofair Games when tariffs first hit.
  • 50% is the pay cut taken by Cephalofair's chief operating officer, Price Johnson.
  • 134 is the number of glimmering orange gems included in each copy of Fire Tower, most of which are made from acrylic plastic.

Sources:

  • "Hasbro's Q2 2019 Earnings Call"
  • "Game Manufacturers Association Convention in Columbus, Ohio, 2019"
  • "ASM Games"
  • "Stonemaier Games"
  • "Panda Game Manufacturing"
  • "Andri Tambunan for The New York Times"