Japanese Game Giants Hit by Stock Plunge Amid Trump's Tariffs

The video game industry in Japan is reeling from a significant stock market downturn, triggered by U.S. President Donald Trump's imposition of tariffs. These tariffs, set to take effect on April 9, target 60 countries, including Japan, which faces a 24% tariff rate. The White House claims these measures are in response to high tariffs on U.S. goods, non-tariff trade barriers, and actions that undermine American economic objectives.

Tariffs are taxes levied on imported goods, and while companies might absorb these costs, they are typically passed on to consumers. This is particularly concerning for gamers, as it could lead to higher prices for tech and gaming products.

The impact on the stock market was immediate and severe. Japan's Nikkei 225 fell by 7.8%, Australia's ASX 200 by 4.2%, South Korea's Kospi by 5.6%, China's Shanghai Composite by 7.3%, Taiwan's Weighted Index by 9.7%, and Hong Kong's Hang Seng by 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported the following declines in Japanese video game stocks on the morning of April 7:

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

Last week, Nintendo announced a delay in pre-orders for the Nintendo Switch 2 in the U.S., attributing it to the uncertainty caused by the tariffs. While pre-orders were scheduled to begin on April 9, they were postponed in the U.S., although the 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 at $499.99. Mario Kart World itself costs $79.99.

The 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 warned that the tariffs, including those on Vietnam where Nintendo had shifted some manufacturing, could lead to a price increase for the Switch 2 globally. "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 noted. "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."

Concerns are mounting among Nintendo fans and analysts that the company may raise the price of the Switch 2 and its games further, amidst backlash over its initial pricing announcement.

Sony, which produces the PlayStation 5 Pro priced at $700, is also facing scrutiny. IGN has reached out to Sony for any statements regarding potential price increases in the U.S.

Economic forecasts have been revised, with Goldman Sachs now estimating a 45% chance of a U.S. recession in the next 12 months, up from 35%, and JPMorgan predicting a 60% likelihood of a global economic downturn.

In defense of the tariffs, President Trump told the BBC, "sometimes you have to take medicine to fix something."

For further details, 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.