Major video game companies in Japan have experienced a significant stock market decline following the announcement of new tariffs by U.S. President Donald Trump.
White House officials indicated targeted reciprocal tariffs on approximately 60 nations they identify as the "worst offenders," set to take effect on April 9. Japan is among the countries facing these customized tariff rates, which stand at 24%.
Trump administration officials state these nations either impose higher tariffs on U.S. exports, maintain "non-tariff" barriers to American trade, or engage in practices they believe undermine U.S. economic objectives.
Tariffs are essentially taxes applied to the cost of imported goods. Although companies within the supply chain might absorb these expenses, the additional costs are typically passed on to consumers. Unfortunately for gamers, these price increases are highly likely to affect technology and video game products.
Japan's benchmark Nikkei 225 index closed down 7.8%, Australia's ASX 200 fell 4.2%, and South Korea's Kospi finished 5.6% lower. The Shanghai Composite dropped 7.3%, while Taiwan's Weighted Index declined 9.7%. Hong Kong's 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 was down 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 community by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff-related uncertainties. While pre-orders were scheduled to begin on April 9, the U.S. launch was specifically postponed, though the June 5 release date remains unchanged. Pre-orders in other regions will proceed as planned on April 9.
Nintendo announced the Switch 2 at $449.99, with a Mario Kart World bundle priced at $499.99. Mario Kart World itself is priced at $79.99.
Nintendo Switch 2 Package Includes:
Nintendo Switch 2 ConsoleJoy-Con 2 Controllers (L+R)Joy-Con 2 GripJoy-Con 2 StrapsNintendo Switch 2 DockUltra High-Speed HDMI CableNintendo Switch 2 AC AdapterUSB-C Charging Cable
Niko Partners analyst Daniel Ahmad had previously cautioned that Trump's unexpected tariffs on countries like Vietnam—where Nintendo had relocated some Switch 2 production to avoid U.S. tariffs on China—might force a strategic reassessment.
"Although the company moved some manufacturing to Vietnam to mitigate U.S. tariffs on China, the potential for reciprocal tariffs before the Switch 2 reveal likely pressured Nintendo to consider higher global pricing," Ahmad explained. "The reciprocal tariffs imposed on Vietnam and Japan are steeper than anticipated, and Nintendo will face the consequences if these tariffs are fully implemented."
Nintendo fans and industry analysts now worry that the company may further increase the price of the Switch 2 and its games, especially after the console's initial pricing already faced criticism.
Sony, which manufactures PlayStation consoles including the $700 PlayStation 5 Pro, also faces uncertainty. IGN has contacted the company for comment regarding potential price increases in the U.S. market.
Goldman Sachs has increased its forecast for a U.S. recession within the next year to 45%, up from a previous estimate of 35%. JPMorgan now predicts a 60% probability of both a U.S. and global economic downturn.
A BBC report states that Trump has defended the tariff policy, remarking that "sometimes you have to take medicine to fix something."
For more details, explore everything announced during the Switch 2 Nintendo Direct and expert opinions on the Switch 2's price and the $80 cost of Mario Kart World.
