Video game companies in Japan have experienced a sharp decline in their stock values following the implementation of new tariffs by U.S. President Donald Trump.
White House officials have indicated that targeted reciprocal tariffs will be applied to approximately 60 nations they consider the “worst offenders,” set to take effect on April 9. Japan is among the countries facing these customized tariff rates, set at 24%.
Trump administration officials state these nations impose higher tariffs on U.S. exports, enforce non-tariff barriers that hinder American trade, or otherwise act in ways that they believe undermine U.S. economic interests.
Tariffs function as taxes levied on the import cost of specific goods. Although companies along the supply chain might absorb some of these expenses, the added costs are frequently passed on to end consumers. Unfortunately for gamers, rising prices are expected to affect technology and gaming products.
Japan’s Nikkei 225 index ended the day down 7.8%, Australia’s ASX 200 dropped 4.2%, and South Korea’s Kospi declined by 5.6%. The Shanghai Composite fell 7.3%, and the Taiwan Weighted Index decreased by 9.7%. The Hang Seng was down 12.5% during afternoon trading.
Dr. Serkan Toto, CEO of Kantan Games, summarized the drop in Japanese video game stocks as markets opened on the morning of April 7. Nintendo fell 7.35%, Sony dropped 10.16%, Capcom declined 7.13%, and Sega decreased by 6.57%.
It's Monday 10am in Japan where Japanese game stocks currently react to these insultingly dumb tariffs like so:
— Dr. Serkan Toto (@serkantoto) April 7, 2025
Nintendo -7.35%
Sony -10.16%
Bandai Namco -7.03%
Konami -3.93%
Sega -6.57%
Koei Tecmo -5.83%
Capcom -7.13%
Square Enix -5.23%
The mobile game companies do even worse.
Last week, Nintendo surprised the gaming industry by postponing pre-orders for the Nintendo Switch 2 in the United States, citing tariff-related uncertainties. Although pre-orders were scheduled to begin on April 9, the U.S. launch was delayed. The console’s June 5 release date remains unaffected in other regions, with pre-orders opening as planned on April 9 outside the U.S.
Nintendo announced the Switch 2 at $449.99, with a Mario Kart World bundle priced at $499.99. Mario Kart World is priced at $79.99.
Nintendo Switch 2 includes the following:
Nintendo Switch 2 console
Joy-Con 2 controllers (L+R)
Joy-Con 2 Grip
Joy-Con 2 Straps
Nintendo Switch 2 Dock
Ultra High-Speed HDMI Cable
Nintendo Switch 2 AC Adapter
USB-C Charging Cable
Niko Partners analyst Daniel Ahmad had cautioned that Trump’s unexpected tariffs on countries like Vietnam—where Nintendo shifted some Switch 2 production to avoid U.S. duties on Chinese imports—might have prompted a reevaluation of pricing.
“While the company has moved some manufacturing to Vietnam to mitigate U.S. tariffs on China, the possibility of reciprocal tariffs before the Switch 2 reveal likely pressured Nintendo to consider higher global pricing,” Ahmad said. “The tariffs imposed on Vietnam and Japan are steeper than anticipated, and Nintendo will be affected if they are fully enacted.”
Nintendo fans and industry experts are now worried that the company may further increase the price of the Switch 2 and its games, especially following the mixed reception to the console’s initial pricing.
Sony also faces uncertainty, as it manufactures PlayStation consoles, including the $700 PlayStation 5 Pro. IGN has reached out to the company to inquire about possible price increases in the U.S. market.
Goldman Sachs now estimates a 45% probability of the U.S. entering a recession within the next year, up from a prior forecast of 35%. JPMorgan predicts a 60% chance of both a U.S. and global economic downturn.
According to a BBC report, Trump defended the tariffs, stating, “Sometimes you have to take medicine to fix something.”
For more details, see everything announced during the Switch 2 Nintendo Direct and expert opinions on the Switch 2’s pricing and the $80 cost of Mario Kart World.
