Video game companies in Japan experienced a significant stock market decline triggered by new tariffs announced by U.S. President Donald Trump.
White House officials indicated targeted reciprocal tariffs on approximately 60 nations identified as the "worst offenders," set to take effect on April 9. Japan is among the countries facing these customized duties, set at a rate of 24%.
Administration officials state that these nations either impose higher tariffs on American products, create non-tariff barriers to U.S. trade, or engage in practices that undermine U.S. economic objectives.
Tariffs are essentially taxes levied on imported goods. While companies along the supply chain could potentially absorb these expenses, the additional costs are typically passed on to consumers. For gamers, this unfortunately means that tech and gaming products are likely to see price increases.
Japan's Nikkei 225 index finished 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%, while Taiwan's Weighted Index plunged 9.7%. The Hang Seng Index was down 12.5% in afternoon trading.
Dr. Serkan Toto, CEO of Kantan Games, reported the drop in Japanese video game stocks at market open on the morning of April 7. Nintendo fell 7.35%, Sony dropped 10.16%, Capcom declined 7.13%, and Sega slipped 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 delaying Nintendo Switch 2 pre-orders in the U.S., citing tariff-related uncertainties. While pre-orders were scheduled to begin globally on April 9, the U.S. launch was 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 $499.99. Mario Kart World itself is priced $79.99.
Nintendo Switch 2 comes with the following:
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 warned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo relocated some Switch 2 production to avoid U.S. tariffs on China, could force a reassessment.
"While the company has shifted some of its manufacturing to Vietnam to offset U.S. tariffs on China, the looming threat of reciprocal tariffs prior to the Switch 2 showcase will have also forced Nintendo to consider a higher price for the rest of the world," Ahmad said. "The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect."
Nintendo fans and industry experts are now worried that the company may further increase the price of the Switch 2 and its games, despite existing criticism of the console's announced pricing.
Questions also surround Sony, the manufacturer of PlayStation consoles including the $700 PlayStation 5 Pro. IGN has reached out to 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 12 months to 45%, up from a previous estimate of 35%. JPMorgan now predicts a 60% likelihood of both a U.S. and global economic downturn.
According to a BBC report, Trump has defended the tariffs, stating that "sometimes you have to take medicine to fix something."
For more details, see everything announced at the Switch 2 Nintendo Direct, and what the experts have to say about the Switch 2 price and Mario Kart World’s $80 price tag.
