Japanese Game Giants' Stocks Plummet Amid Trump's Tariffs

The stock market in Japan has experienced a significant downturn due to the introduction of U.S. President Donald Trump's tariffs, affecting video game companies across the country. These tariffs, set to be implemented on April 9, target 60 countries, including Japan, with a 24% tariff rate. The White House claims these measures are a response to what they perceive as unfair trade practices, such as higher tariffs on U.S. goods and non-tariff barriers.

Tariffs, which are essentially taxes on imported goods, can lead to increased costs that are often passed on to consumers. This has raised concerns about rising prices for tech and gaming products, which could impact gamers worldwide.

The financial markets have reacted sharply to these developments. Japan's Nikkei 225 index fell by 7.8%, while other Asian markets also saw substantial declines: the ASX 200 in Australia dropped by 4.2%, the Kospi in South Korea by 5.6%, the Shanghai Composite by 7.3%, the Taiwan Weighted Index by 9.7%, and the Hang Seng by 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported significant declines in the stocks of major Japanese video game companies on the morning of April 7. The figures are as follows:

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

Adding to the turmoil, Nintendo announced a delay in pre-orders for the Nintendo Switch 2 in the U.S., citing the uncertainty caused by the tariffs. While the pre-orders were initially scheduled for April 9, they have been postponed in the U.S., though the console's June 5 release date remains unchanged. Pre-orders will proceed as planned in other regions on April 9.

The Nintendo Switch 2 is priced at $449.99, with a Mario Kart World bundle available for $499.99. Mario Kart World itself is priced at $79.99. The Switch 2 comes equipped with:

• 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 highlighted that Nintendo's shift of some manufacturing to Vietnam, in anticipation of U.S. tariffs on China, may have been affected by the surprise tariffs on Vietnam. Ahmad noted, "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. 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."

There is growing concern among Nintendo fans and analysts that the company may increase the price of the Switch 2 and its games in response to these tariffs, especially following a backlash to the console's pricing at its reveal.

Sony, another major player in the gaming industry with its PlayStation consoles, including the $700 PlayStation 5 Pro, is also facing uncertainties. IGN has reached out to Sony for comments on potential price increases in the U.S. due to the tariffs.

Amid these developments, economic forecasts have become more pessimistic. Goldman Sachs now estimates a 45% chance of a U.S. recession within the next 12 months, up from a previous estimate of 35%. JPMorgan sees a 60% chance of a U.S. and global economic downturn.

In response to criticism, President Trump defended the tariffs, stating, "sometimes you have to take medicine to fix something," according to a report by the BBC.

For further details, you can explore everything announced at the Switch 2 Nintendo Direct, and read what the experts have to say about the Switch 2 price and Mario Kart World’s $80 price tag.