Washington state's thriving tabletop game industry, estimated to be worth $2 billion, faces a significant challenge in the form of newly implemented tariffs. These tariffs, primarily targeting goods imported from China where a large portion of tabletop games are manufactured, have sparked widespread concern among developers, publishers, retailers, and consumers alike.
The impact of these tariffs is multifaceted. The most immediate effect is an increase in manufacturing costs. Games that previously cost $3.00 to manufacture in China could now cost $4.62 before shipping, according to Meredith Placko, CEO of Steve Jackson Games. This increase, when combined with freight, warehousing, fulfillment, and distribution expenses, can transform a $25 game into a $40 product, which is not simply a "luxury upcharge" but rather "survival math". Such a steep increase in production costs leaves many companies with "not a lot of wiggle room" to absorb the changes.
This forces companies to make difficult choices. Raising prices seems inevitable, potentially pricing consumers out of the market. As Loren Coleman, CEO of Catalyst Game Labs, stated, "Prices will have to be raised, punishing the gaming community for no fault of theirs." This could lead to decreased sales, hurting both stores and distributors. Larger publishers might be forced to lay off staff and reduce annual plans, while smaller publishers, often the source of innovation, could scale back or even go out of business altogether.
Some publishers are considering shifting production to the U.S., but this presents its own set of challenges. Chris Pramas, president of Seattle-based Green Ronin Publishing, noted that "American factories simply do not have the right equipment or expertise" to produce the custom components, such as specialized dice, plastic figurines, and complex game boards, that are common in modern tabletop games. Even if U.S. manufacturing were feasible, it would likely be more expensive than manufacturing in China, even with the tariffs. Wolfgang Baur, CEO of Kobold Press, explained that while some projects might be shifted to the U.S., it would still require an increase in the MSRP (Manufacturer's Suggested Retail Price).
The tariffs also impact crowdfunding, a crucial source of funding for many tabletop game projects. Smaller gaming companies that have already completed crowdfunding campaigns face the difficult decision of covering the increased costs themselves, asking backers for more money, or refunding the money already provided – any of which could be detrimental to their business.
In response to these challenges, the tabletop game industry may see several shifts. Publishers may focus on producing smaller, less component-heavy games to reduce manufacturing and shipping costs. Big-box Kickstarter campaigns with miniatures and numerous stretch goals may become less common due to the high production risks and unpredictable costs. Some companies might explore manufacturing options in other countries, such as South Korea or Vietnam, or use European intermediaries to circumvent the U.S. tariffs. Some may choose to delay or cancel projects, downsize, use cheaper packaging, or cut components.
Despite the challenges, many in the industry remain resilient. Mike Selinker, owner of Renton, Wash.-based Lone Shark Games, believes that companies will find a way to survive. As he stated, "We're a resilient bunch. Some things that we have planned will change... But most of Washington's game creators are in this because they love it. We're not sure what else we'd do. So, we'll figure out a way to survive even this catastrophe."
While the future remains uncertain, the new tariffs pose a significant threat to Washington's tabletop game industry. The industry must adapt to these changes by exploring new manufacturing options, adjusting their business models, and continuing to create engaging experiences for players.