Fitzovich | 18 May 2019 2:55 p.m. PST |
President Donald Trump's trade war with China is causing a panic inside the board game industry. A list of tariffs on Chinese imports proposed by the United States trade representative would raise the cost of virtually everything needed to produce modern tabletop games. John Stacy, executive director of the Game Manufacturers Association (GAMA), says that tariffs could dramatically reduce the number of new games in production in the United States. Even worse, they could cost workers and business owners their livelihoods. GAMA is a non-profit organization that represents more than 1,000 companies in the hobby games industry. That industry includes board games, card games, dice, role-playing games, and miniatures games. It's a sector that has seen remarkable growth over the last decade thanks to a number of factors. Among them is the birth of crowdfunding platforms like Kickstarter, but also a modern renaissance in board game design. Meanwhile the tabletop RPG sector, lead by Dungeons & Dragons and made viral by actual-play experiences, is more popular than ever before. In total, Stacy says that hobby games now produce as much as $5,000,000,000 USD annually for the U.S. economy. But that number is now at risk thanks to Trump's proposed tariffs. "We're very concerned about it," Stacy told Polygon. "There's been a lot of conversation among our members in the last two days about the impact of this and how it's going. It's potentially a 25 percent increase on the costs of importing products from China. We'd pass those increases on to the retailers, who would pass them on to consumers. And so there's definitely this ripple effect in the economy." link |
robert piepenbrink | 18 May 2019 3:18 p.m. PST |
I can (and have, sometimes) argue both ways on tariffs, but at least I knew I was doing it. This fellow calmly announces that board game manufacturing can't possibly come back to the US because the US makers of small-run games have just gone away over the last 20 years. Could this possibly have something to do with US trade policy over that period? And what do you suppose would be the effect of making it harder to import from areas with no labor or environmental laws to speak of? And as people were pointing out on the site, a 25% tariff on imported games would only result in a 25% rise in the cost of said games if stores and dealers had no other expenses, like say US labor, rent, utilities and taxes. I'd guess an actual price increase of 10-15%--going down as US citizens start competing with the now more expensive Chinese product. Doesn't mean a tariff is necessarily the best approach. But the author needs to own up to the consequences of the present approach. |
PK Guy Brent | 18 May 2019 4:10 p.m. PST |
If a manufacturer faces a 25% tariff, he owes that money to the government before the product arrives in the US. His choices are to 1)eat the tariff and lose most of his profit 2) only pass on some of the tariff and greatly reduce his margin, or 3) Keep his margin where his business is accustomed and pass on the appropriate price increase. Any way you slice it, business (and especially small business) is between a rock and a hard place. Consider those companies that are sourcing from China and using Kickstarter. Their choice is to eat the tariff – and face an existential crisis, or try to pass that on to gamers that likely don't care about their problems. Any way you slice it, tariff wars will directly and adversely impact any company importing from China and gamers buying their product. |
JMcCarroll | 18 May 2019 4:27 p.m. PST |
"The [hobby games] manufacturing infrastructure in the United States has basically collapsed in the last 20 years," Lies, lies and more lies, doom and gloom standard article. |
The Beast Rampant | 18 May 2019 4:33 p.m. PST |
China is a hostile country who has no respect for the intellectual property of others, and has had it too good trade-wise for far too long. Don't like it? Manufacture elsewhere. Which is really the point. The panicked clucking of the Chicken Littles will eventually be drowned out by China's squealing. This is how the game is played. The crisis will pass. And if half the boardgame and wargames companies are wiped out (not happening), it's was already an overcrowded market, anyway. |
goragrad | 18 May 2019 4:55 p.m. PST |
My niece has been shopping online for a laptop. In doing some product checking of my own to see that she gets a good by I ran across an article from a while back that noted that computers had already seen a 5 percent price increase due to the tariffs at that time. I am sure it is more now. Without addressing underlying internal factors impacting industries and their competitiveness imposing and then raising tariffs will only drive prices up. This may indeed bring more internal production into play in the gaming industry, but it will then be at the higher price levels. The gaming industry is not even on the radar for those imposing tariffs – it is a sideshow. If the industries intended to benefit were to make a comeback to the point that tariffs were deemed unnecessary any internal gaming companies would once again face more competitive competition from foreign companies. |
Editor in Chief Bill | 18 May 2019 5:37 p.m. PST |
Sounds like not much impact on the miniature wargaming industry, though. |
StoneMtnMinis | 18 May 2019 5:50 p.m. PST |
Don't worry. If it is in fact a 5 Billion$ industry there is a US based company, or several, that will step into the void and provide the services required by the board game industry. And in doing so provide additioanl jobs in this country. And, if you read further into the article the political spin becomes more obvious. |
Old Glory | 18 May 2019 5:50 p.m. PST |
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Rudysnelson | 18 May 2019 6:55 p.m. PST |
There was a larger impact on the hobby when the Chinese began buying all of the tin and lead available. |
The Beast Rampant | 18 May 2019 7:54 p.m. PST |
Sounds like not much impact on the miniature wargaming industry, though. Outside of the top four, how many companies even manufacture outside of the US and UK? |
PK Guy Brent | 18 May 2019 8:01 p.m. PST |
I think we'd all be wise to consider the wider implications beyond the game industry. You'll be paying far more in extra costs on other items than game items. Corporations will not absorb the cost of the tariffs – they get passed on to the consumer. The problem isn't as simple as "punish China". So much manufacturing has moved to China that it would take a considerable amount of time and investment for the US to rebuild that industrial base. No corporation is going to take the investment risk of gambling on tariffs staying in place to take that course of action. Somebody wins from these tariffs, but it ain't you and I. |
miniMo | 18 May 2019 8:05 p.m. PST |
Plastic miniatures are primarily manufactured in China. Ogre miniatures for example. Dice. Dragon Dice for example. Those are both ones that in the current state of the retail market rely on Kickstarter projects and print on demand in China to keep their sales going. The old retail and distribution models that got those games started no longer function like they did way back when. |
Dan Cyr | 18 May 2019 8:26 p.m. PST |
Already have had one KS project (board game) inform me that they'll be adding 25% to the game when it arrives as they cannot cover it with their set margins. Suspect that future KS for Ogre vehicles will be impacted badly (I was hoping for the European/Japanese to be done this year). Dan |
Thresher01 | 18 May 2019 9:33 p.m. PST |
Apparently, a lot of plastic models are made in China (even ones from Japanese companies), so they could be impacted. I agree on the intellectual property issues with China, so am willing to pay more if this gets us a better agreement/deal. Of course, even if they agree, that doesn't mean they'll keep their word, so……. |
Nick Bowler | 19 May 2019 1:50 a.m. PST |
Lots of comments here forgetting that there is a rest of the world. If costs of items from China are too expensive: - in the short term costs will be passed on. - in the long term other countries that can manufacture cheaply will be chosen. E.g., India, Vietnam, Malaysia, Indonesia, etc. I am pushing forward a few orders, in the belief that there will be a short term rise no matter what due to the chaos. |
Col Durnford | 19 May 2019 6:49 a.m. PST |
Does this mean it will cost more for a fake Rolex? Since I'm no fan of plastic and haven't bought a board game in years, no effect. Now if we get I. A trade war with Britain, that's another matter. |
Dye4minis | 19 May 2019 6:59 a.m. PST |
MiniMo: On the historical side, many plastic figure manufacturers are in the UK. (Rendra for example). Old Glory: While China may control the Tin Prices, there are a heck of a lot of other countries that mine and sell Tin that are NOT part of the tarriff scheme. In fact, the government is also looking to repeal tarriffs on other strategic metals like steel and iron. Stay tuned. When I was active in GAMA, it was run by the "big names" in gaming and back then, manufacturing components in China (especially printing) was a growing "me-too" movement. This is just another reason why GAMA should be standing behind US based/ wholely manufacturerd components in the USA. If they really wanted to help, they might provide a list of which companies produce in the USA, coordinate with companies to help find other industry member companies to help each other out! Always thought that is what trade associations did- the whole is greater than the pieces – for helping each other helps to ensure the industry as a whole survives during times mutual crisis? |
Dynaman8789 | 19 May 2019 7:18 a.m. PST |
> there are a heck of a lot of other countries that mine and sell Tin that are NOT part of the tarriff schem If they were as cost effective as China we would already have been ordering from them. So costs will still rise, maybe not 25% but they will still go up. |
Cerdic | 19 May 2019 7:46 a.m. PST |
Could be good news for Cornwall…! |
Old Glory | 19 May 2019 8:31 a.m. PST |
My original post just said " Tin" followed by question marks -- meaning -- unlike some -- I have no idea the effect it may have ??? I do know the following. 1.When the Chinese " begin buying all The tin" it did not have any effect my costs one bit.
2. I have been buying tin for over 32 years now --probably more in one year then most in a lifetime -- 2018 over 15 tons -- (just think of all the little army men) -- so I do know a wee bit about this business, the market, and cause and effect? (obviously not as much as many others?) 3. I do not claim to know what will happen in the future, just something to be watched? 4.I tend to never tell people flat out that "they are wrong" because usually I don't know anyway -- and it can make one sound like a "know it all?" 5. I do think most of the Plastic producers in England get their product from Renendra right there on the Isle? Regards Russ Dunaway |
Waco Joe | 19 May 2019 8:45 a.m. PST |
There has probably been a greater impact by customs fees, postage "handling" fees and VAT than tariffs. |
Thresher01 | 19 May 2019 10:33 a.m. PST |
Steel and aluminum tariffs from Canada and Mexico are off. |
Garand | 20 May 2019 9:21 a.m. PST |
Apparently, a lot of plastic models are made in China (even ones from Japanese companies), so they could be impacted. My other hobby is 1/35 armor modeling, so I'm watching this situation very closely. For better or worse, that niche in the hobby is very much dominated by Chinese manufacturers. Not only are Trumpeter & Dragon Chinese brands, but a lot of the new, up & coming manufacturers are Chinese too. Sure, we still have Tamiya, Academy & Italeri, but just Dragon & Trumpeter alone (& the associated sub-brands, like Hobby Boss, an imprint of Trumpeter) so dominate the market in sheer volume it'll be hard for the competition to step in, especially when mainstays like Tamiya treat plastic modeling as more of a boutique brand (compared to their real money makers in RC cars & toys), & the US model industry is completely gutted (Revell-Monogram is no longer a US brand since it went out of business; the molds are now the property of Revell/Germany, FREX). For this hobby, I doubt we're going to see a resurgence of US companies putting out kits like they did 50 years ago (the few that are left). Instead we'll just pay the higher prices… Damon. |
ced1106 | 23 May 2019 6:36 a.m. PST |
From Reddit: "I am a licensed Customs Broker in the US. I literally deal with these tariffs ALL day long. People sit here and complain that "Well a 25% price increase is going to kill businesses". Here is some news for you to get a better perspective on this situation: So let's say a game publisher has a game with an MSRP of $60.00 USD. The actual cost they declare to Customs is around $8 USD-$11, on average. The rest of the cost goes to paying for things like ocean freight charges (which are non-dutiable and thus, the tariffs do not impact), and warehousing and trucking and profit and labor costs and other local charges, none of which are dutiable and thus the tariffs do not affect. That means, on a game that has an import cost of $8.00 USD, the tariff adds $2 USD to the price of importation of that copy of the game. $2 USD to a $60 USD game is a total increase of 3.33%. That sort of cost can be absorbed with barely any notice to the consumer. link link |
ced1106 | 23 May 2019 6:50 a.m. PST |
> There has probably been a greater impact by customs fees, postage "handling" fees and VAT than tariffs. Yeah, that. The worst offender, imo, is the retailer-distributor system itself. Distributors won't carry niche hobby products, which is why you have to go directly to the manufacturer to buy stuff *and* pay shipping for it. Then, on top of this, distributors require at *least* a 40% discount (sometimes 70%) removing any chance of a profit on a product. That's why KS is so popular. Pretty much NONE of these games can be sold through traditional retailer-distributor channels, beyond a base game and one or two expansions. That's why you see so many KSE's. These aren't prizes for special snowflakes. This is product that the publisher will lose money if they use traditional retail. Alternately, these $100 USD overproduced core games would have to be chopped up into base games and expansions, whose total cost would be at least a $100 USD more (eg. Descent's selling model). This doesn't excuse tariffs, but, as Waco says, we have other additional costs in the hobby business and small companies that have more impact. Shipping hikes in the last few years have shut down mail-order only small businesses, such as collector's record sellers. State sales tax legislation threatens to overburden small businesses with time-consuming and costly paperwork. Our own governments are doing just fine eliminating small businesses. We don't need China's help. :/ |