Strategic Intelligence: Gaming Sector Scorecard Q1 2025 Update

Strategic Intelligence: Gaming Sector Scorecard Q1 2025 Update

Summary

Due to several factors, US tariffs will have a mixed impact on gaming companies. Tariffs increase the cost of importing gaming hardware and components from countries like China, Japan, and Vietnam. This leads to higher production costs and retail prices for consoles and accessories, potentially reducing consumer demand. Companies like Nintendo and Razer have paused preorders and sales in the US due to anticipated cost hikes.

The latest US tariffs primarily target hardware, but gaming software companies will experience ripple effects. These companies depend on hardware for game development and testing, so higher import costs for computers, servers, and other equipment will raise operational expenses. As hardware prices increase, consumer spending on software may decline, potentially reducing sales. Additionally, cloud gaming services could face higher costs for data center services, affecting their pricing models.

Scope

• This sector scorecard provides a top-down, comprehensive outlook for the key players in the gaming sector over the next two years, based on the key themes set to transform their industry landscape.

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• At GlobalData, we have developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• Our thematic engine tags over 180 million data items across six alternative data sets—patents, jobs, deals, filings, social media, and news—to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.