Japanese video game companies face sharp stock market drops due to U.S. President Donald Trump's new tariffs.
White House officials announced targeted reciprocal tariffs on about 60 nations deemed "worst offenders," effective April 9. Japan faces a 24% tariff rate.
Officials claim these nations impose higher tariffs on U.S. goods, use "non-tariff" trade barriers, or undermine American economic interests.
Tariffs, essentially import taxes, often raise consumer prices as companies pass on costs. Gamers may see higher prices for tech and gaming products.
Japan's Nikkei 225 index fell 7.8%, Australia's ASX 200 dropped 4.2%, and South Korea's Kospi declined 5.6%. China's Shanghai Composite slid 7.3%, Taiwan's Weighted Index lost 9.7%, and Hong Kong's Hang Seng fell 12.5% in afternoon trading.
Dr. Serkan Toto, CEO of Kantan Games, reported declines in Japanese video game stocks on April 7 morning: Nintendo down 7.35%, Sony 10.16%, Capcom 7.13%, and Sega 6.57%.
It's Monday 10am in Japan, where game stocks are reeling from these misguided tariffs:
— 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%
Mobile game companies fare worse.
Last week, Nintendo stunned gamers by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff-related uncertainty. Originally set for April 9, U.S. pre-orders are postponed, but the June 5 release remains on track. Pre-orders proceed as planned elsewhere on April 9.
Nintendo priced the Switch 2 at $449.99, with a Mario Kart World bundle at $499.99. Mario Kart World costs $79.99.
Nintendo Switch 2 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 CableNiko Partners analyst Daniel Ahmad warned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo moved some Switch 2 production to avoid U.S. tariffs on China, may force a pricing rethink.
"Despite shifting some manufacturing to Vietnam to counter U.S. tariffs on China, the threat of reciprocal tariffs before the Switch 2 reveal likely pushed Nintendo to consider higher global prices," Ahmad said. "Tariffs on Vietnam and Japan are steeper than anticipated, and Nintendo will feel the impact if fully enforced."
Nintendo fans and analysts fear further price hikes for the Switch 2 and its games, amid backlash over the console’s announced pricing.
Sony, which produces PlayStation consoles including the $700 PlayStation 5 Pro, also faces uncertainty. IGN has reached out to Sony for comment on potential U.S. price increases.
Goldman Sachs now estimates a 45% chance of a U.S. recession within 12 months, up from 35%. JPMorgan predicts a 60% likelihood of a U.S. and global economic downturn.
The BBC reports Trump defended the tariffs, stating, "Sometimes you need tough measures to solve big problems."
For more, explore all announcements from the Switch 2 Nintendo Direct and expert insights on the Switch 2 price and Mario Kart World’s $80 price.
