Trade War Uncertainty Threatens US Board Game Industry

Tariffs imposed by President Trump have sparked a crisis for small board game publishers in the US, forcing them to either halt production or significantly alter their business models. While large game companies like Hasbro and Mattel may be able to mitigate the effects of tariffs, the complexity and variability of board games make it challenging for smaller companies to adapt. As a result, many independent publishers are struggling to stay afloat, with some forced to reduce staff, lay off workers, or even leave the industry altogether.

Key Takeaways:

• At least two prominent publishers, Greater Than Games and CMON Games, have curtailed production and cut staff since April due to tariffs on Chinese imports.
• Several other publishers are struggling to bring in orders for the holiday season, with some unable to attend conventions due to lack of product.
• The tariff uncertainty has caused a significant shift in the business model of companies like Japanime Games, which has focused on producing card games and inexpensive products to absorb the extra production costs.
• Many board game publishers feel they are among the first victims of Trump's trade war, with some forced to leave $1.2 million worth of product at a port in China due to delayed shipments.
• Companies like Penguin Random House's Cephalofair Games have been stymied by shifting tariffs, with CEO Price Johnson stating that "I can't say with any level of confidence that we feel like we can trust what's coming next."
• Some companies have found modest ways to offset tariffs, such as swapping plastic molds for paper ones or offering "tariff-offset gift cards" to customers.
• The uncertainty surrounding tariffs has raised questions about the long-term viability of the US board game industry, with some companies questioning whether it's really a problem that so many games are made in China.

Statistics:

• At least two prominent publishers have curtailed production, with Greater Than Games stopping production of Spirit Island.
• Tariffs imposed by President Trump have caused a 50 percent increase in the price of games, with some prices increasing by as much as $15.
• 20 percent of game publishers who would typically attend conventions were no-shows in June due to lack of product.
• The tariff uncertainty has caused a significant shift in the business model of companies like Japanime Games, with CEO Eric Price stating that he would have to raise the price of a $50 game to about $80.
• Cephalofair Games left $1.2 million worth of product at a port in China for about two months when the tariffs first hit.
• 90% of board games have a sale price of less than $50.

Sources:

• Zach Makowski, a board game enthusiast who expects tariffs to make games more expensive.
• John Stacey, the executive director of the Game Manufacturers Association, a trade group.
• Benjamin Ho, the owner of 90 games and a board game enthusiast.
• Johann Thiel, a board game enthusiast who attends a weekly game night in Brooklyn.
• Eric Price, the president of Japanime Games.
• Zach Makowski, a board game enthusiast who expects tariffs to make games more expensive.
• Price Johnson, the chief operating officer of Cephalofair Games.
• Gwen Ruelle and Sam Bryant, the owners of Runaway Parade, a Brooklyn-based board game company.
• Alfred Mai, who owns the San Francisco-based card game company ASM Games.
• Jamey Stegmaier, a founder of Stonemaier Games, a St. Louis-based game company.
• Michael Lee, the chief executive of Panda Game Manufacturing.
• Jamey Stegmaier, a founder of Stonemaier Games.