Restoration Games Co-Founder Sees Existential Crisis in Industry

In a sector known for its creativity, its sense of community, and its thin margins, the financial hit some designers and publishers of tabletop games are facing has hit a nerve. This week, Jamey Stegmaier, the designer behind Scythe, Gloomhaven, and other recent top sellers in the hobby game market, voiced his outrage at an announcement that goods made in China and shipped to the U.S. would soon be subject to a 54 percent tariff.

In a blog post, Stegmaier, whose work has appeared on bestseller lists all over the world, wrote: “Last night I tried to work on a new game I’m brainstorming, but it’s tough to create something for the future when that future looks so grim. I mostly just found myself staring blankly at the enormity of the newly announced 54 percent tariff.”

For a designer of some of the most popular games on the planet, this was a startlingly emotional statement—but one that has found echoes in the industry as a whole.

Industry experts estimate that 90 percent of board games produced in the U.S. are manufactured in China, a situation that’s not likely to change anytime soon. Germany, a spiritual and historical center of modern tabletop gaming, also has board game factories, for example, but games shipped from Europe still face lower tariffs and are not made using the full-service, end-to-end production options available in China.

Producing those materials in the U.S. would be feasible, but financially impossible. Stegmaier noted that he was recently quoted $10 by a domestic manufacturer for an empty box with just the printing. $10, by contrast, could produce and package an entire game in China.

That’s why the news of the 54 percent tariff represents an existential crisis for the board game industry. Most game publishers, and especially smaller or mid-sized publishers, work on small margins with little room to absorb such a price hike. The tariffs, which go into effect as soon as they’re announced with no grace period, represent a sudden shock to the industry.

The head of Steve Jackson Games, Meredith Placko, has also taken to social media to decry the impact of the tariffs. Steve Jackson Games publishes one of the most widely distributed and popular lines of games in the hobby space, Munchkin, but even Placko’s company sources overseas to keep up with demand.

“I get it. I do. But for the reasons of cost and quality, and availability, we and most every board game company make the majority, if not all, of our games overseas,” Placko wrote. “We have factories we work with, just like the car companies have factories they work with. The people who work there are good at their jobs, and we’ve built relationships with them over the years.”

Placko also pointed out that switching to domestic production is more than just a logistical problem; it’s a fundamental change to the industry that won’t be fixed overnight.

“It’s not just a policy change,” Placko wrote. “It’s a seismic shift that will have far-reaching implications for everyone.”

Rob Daviau, co-founder of Restoration Games and designer of the pandemic Legacy series of games, among many others, has been vocal on the topic in recent months. He took to social media regularly to describe his experience in business meetings, which he characterized as “an existential crisis about our industry.”

In an interview with BoardGameWire, Daviau was blunt. “If it comes to pass, we’re going to see a great collapse in the hobby gaming market in the US,” he said.

Consumers, Retailers to Bear Costs, Too

Gamers themselves could soon face consequences as well. Prices for new releases will almost certainly spike as companies try to factor the increase into their prices. In some cases, publishers will try to save money by using cheaper parts and materials, leading to a drop in quality; others will simply cancel or delay new releases altogether.

Local game stores may also be in trouble, as many face an uphill battle against internet retailers to begin with. Gamers stuck with high prices on new releases may turn to the collection they’ve already bought but haven’t played, the collection known among fans as their “shelves of shame.” Gamers might also buy games online rather than from local stores, just to get a better deal.

“Within a few months, US companies will lose a lot of money and/or go out of business,” Stegmaier wrote. “And US citizens will suffer from extreme inflation.”

No Easy Fixes

Some publishers may try to subvert the system by selling to distributors who import through Europe or another market, as those products are not subject to the same tariffs. But, as Stegmaier has pointed out, that’s a workaround for European and other markets, not an American one. Sixty-five percent of his company’s sales, he noted, come from within the United States.

Also galling is the question of timing. For games that haven’t been finalized in design or even begun production, companies have the theoretical ability to re-budget, accounting for the extra costs. For games that have already been produced, shipped from China, and are on their way to port in the U.S.? No one can escape the tariff. Chris Solis, the head of California-based Solis Game Studio, describes his current situation: “I have 8,000 games leaving a factory in China this week and now need to scramble to cover the import bill.”

An Industry Under Pressure

The Game Manufacturers Association (GAMA), a nonprofit trade group that advocates for board game publishers, has been fighting the tariff. So far, those efforts have seen limited success.

The full impact of the tariff and ensuing price hike is not yet clear. In any case, the industry has never faced a challenge like this before, and few understand the extent of its implications. One thing is for certain: a business built on community, creativity, and a shared love of tabletop gaming has a lot to lose.