The BREXIT vote is over and the world (including the gaming industry) is waking up to a new reality.
Everyone knew the UK referendum to leave the European Union was going to be tight. However, as recently as 8 hours back everyone from the politicians, to the financial markets, to the bookmakers said the safe money was on “Stay”. Then the counting began and it was clear the people of the United Kingdom had another path in mind for their nation. The BBC has just called BREXIT in favor of “Leave”
As of printtime, the pound is trading at $1.33 USD to 1 Pound – a low not seen since 1985 (source: BBC).
The Pound has dropped 10.6% versus the dollar since the BREXIT polls closed (less than 12 hours ago)
The Pound has dropped 7.5% versus the Euro since the BREXIT polls closed (less than 12 hours ago)
Here is the latest Bloomberg currency snapshot as of presstime. This is the Pound vs the USD over the last 12 months. That cliff on the far right is what a 10% market drop in 7 hours looks like.
Back to Wargaming
Of course this is major, major news and it will affect the gaming industry. Not only Games Workshop, but a large number of big players in the tabletop gaming industry are UK based. They will be seeing their prices and market valuations dropping as well versus other major currencies, while companies based in the United States and the EU will see their prices rise in comparison.
There will, as always in international markets, be opportunities for customers and bargain hunters, but at a macro level this will have an impact as well. We for example could see UK based goods drop in prices as they are adjusted into EU and American markets, making them more accessible to customers. This would increase sales abroad which may be just what some UK companies could use. Inversely EU and American goods could see price increases in the UK as the market adjusts, making them a stiffer climb for British consumers.
In any case, I would tell all our readers to keep a sharp eye on those currently rates, because this is an unexpected wake up call to the world and we are in uncharted financial and political waters on this one. There will certainly be some big financial swings back and forth until things start to settle out. It will be months and years before we have a real sense for how this will affect the big tabletop gaming companies and their marketshare but rest assured they will be putting thier financial teams on it starting this morning.
~Have at it my friends – and welcome to the new world.