Tariffs on Chinese Imports
The U.S. government implemented a 54% tariff on goods imported from China, effective April 5th. This move has notably affected the tabletop gaming sector, as many products are manufactured in China. Industry leaders, including Steve Jackson Games, have expressed concerns about increased production costs leading to higher retail prices. For instance, a game previously produced for $3 could now cost $4.62 before shipping, potentially raising its retail price from $25 to $40. The Game Manufacturers Association (GAMA) warns that these tariffs could have widespread negative effects on the industry and the broader U.S. economy.
GameStop Store Closures and Strategic Shift
GameStop announced plans to close additional stores in the upcoming fiscal year, following nearly 600 U.S. store closures in 2024. The company is shifting focus towards emerging opportunities, such as becoming a PSA-certified trading card dealer and investing in cryptocurrency. This strategic pivot may influence the retail landscape for tabletop games, prompting consumers to seek alternative shopping venues.
Launch of Riot Games’ ‘Riftbound’
Riot Games unveiled “Riftbound: League of Legends Trading Card Game,” set in the Runeterra universe. Launching with over 300 cards in the “Origins” set, the game offers multiple formats, including 1v1, 2v2, and free-for-all multiplayer. Distribution partnerships aim to ensure availability at local game stores, presenting new opportunities for retailers.
Diamond Update
In January 2025, Diamond Comic Distributors filed for Chapter 11 bankruptcy protection due to significant financial challenges. As part of the restructuring process, Diamond sought to sell key assets, including Alliance Game Distributors.
Initially, Canadian-based Universal Distribution submitted a “stalking horse” bid of $39 million for Alliance Game Distributors, setting a baseline for subsequent offers. However, Alliance Entertainment Holdings, a Nasdaq-listed distributor specializing in music, movies, video games, electronics, and collectibles, ultimately secured the winning bid to acquire substantially all of Diamond’s assets.
The acquisition encompasses Diamond Comic Distributors (U.S.), Alliance Game Distributors, Diamond Select Toys & Collectibles, and Collectible Grading Authority. Alliance Entertainment plans to finance this acquisition by expanding its existing $120 million revolving credit facility to $160 million.
Jeff Walker, CEO of Alliance Entertainment, described the acquisition as a transformative opportunity to enhance the company’s presence in gaming and physical collectibles, aiming to leverage cross-selling synergies across mass retail and specialty channels.
The transaction is pending approval from the U.S. Bankruptcy Court for the District of Maryland, with a hearing scheduled for early April 2025. If approved, the deal is expected to close later this month.
