Japanese video game companies have experienced a sharp decline in stock prices following the announcement of new tariffs by U.S. President Donald Trump. The White House unveiled targeted retaliatory tariffs on approximately 60 nations it deemed the "worst offenders," set to take effect April 9. Japan faces a substantial 24% tariff rate.
Administration officials claim these nations impose higher tariffs on American products, maintain restrictive non-tariff trade barriers, or engage in practices that supposedly undermine U.S. economic interests. Tariffs effectively function as import taxes on specific goods. Although companies might absorb these additional costs, they typically pass them on to consumers—raising concerns about potential price hikes for gaming hardware and software. Major Asian markets reacted severely to the announcement: Japan's Nikkei 225 plunged 7.8%, Australia's ASX 200 dropped 4.2%, South Korea's Kospi fell 5.6%, while China's Shanghai Composite and Taiwan's Weighted Index plummeted 7.3% and 9.7% respectively. Hong Kong's Hang Seng tumbled 12.5% during afternoon trading.
Dr. Serkan Toto, CEO of Kantan Games, documented the morning plunge of Japanese gaming stocks on April 7: Nintendo (-7.35%), Sony (-10.16%), Capcom (-7.13%), and Sega (-6.57%). Mobile gaming companies suffered even steeper declines.
It's Monday 10am in Japan where Japanese game stocks currently react to these insultingly dumb tariffs like so:
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.
— Dr. Serkan Toto (@serkantoto) April 7, 2025
The gaming industry was already reeling from Nintendo's recent announcement delaying U.S. pre-orders for its Switch 2 console, citing tariff-related uncertainties. While global pre-orders launch April 9 as scheduled, U.S. customers must wait—though the June 5 release date remains unchanged.
Nintendo priced the Switch 2 at $449.99, with the Mario Kart World bundle at $499.99. The standalone Mario Kart World retails for $79.99.
Nintendo Switch 2 Package Includes:
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 cautioned that Trump's unexpected tariffs on Vietnam—where Nintendo relocated some Switch 2 production to avoid Chinese tariffs—forced the company to reevaluate its pricing strategy.
"Nintendo's manufacturing shift to Vietnam sought to circumvent U.S. tariffs on China," Ahmad explained. "However, the unexpected reciprocal tariffs on Vietnam and Japan—exceeding projections—may compel Nintendo to implement price adjustments globally if these measures take full effect."
Analysts and consumers now worry Nintendo might further increase Switch 2 pricing amid existing backlash over the console's announced cost.
VoteView ResultsSony also faces scrutiny regarding its PlayStation consoles, including the premium $700 PS5 Pro. IGN has reached out regarding potential U.S. price adjustments.
Financial institutions have revised recession predictions upward—Goldman Sachs now estimates a 45% chance of U.S. recession within 12 months (up from 35%), while JPMorgan forecasts 60% probability of global economic downturn.
President Trump defended the tariffs in a BBC interview, stating: "Sometimes therapeutic measures are necessary to correct imbalances."
For related coverage, see all Switch 2 announcements from Nintendo Direct and expert analysis on the console's pricing and Mario Kart World's $80 cost.
