Trump Tariffs Trigger Sharp Decline in Japanese Gaming Stocks

Japan's video game industry faced a steep stock market drop due to U.S. President Donald Trump's new tariffs.

White House officials announced targeted reciprocal tariffs on about 60 countries deemed significant trade violators, effective April 9. Japan faces a 24% tariff rate under this policy.

These nations, according to Trump's team, impose higher tariffs on U.S. products, create non-tariff trade barriers, or engage in practices seen as detrimental to American economic interests.

Tariffs act as taxes on imported goods, often increasing costs for consumers as companies pass on the expense. Gamers are likely to see higher prices for tech and gaming products as a result.

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 closed down 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 significant declines in Japanese video game stocks on April 7 morning: Nintendo fell 7.35%, Sony 10.16%, Capcom 7.13%, and Sega 6.57%.

It’s Monday 10am in Japan, and Japanese game stocks are reacting sharply to these misguided tariffs:

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 are faring even worse.

— Dr. Serkan Toto (@serkantoto) April 7, 2025

Nintendo recently stunned the gaming community by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff-related uncertainty. Originally scheduled for April 9, U.S. pre-orders are postponed, though the June 5 release date remains unchanged. Pre-orders proceed as planned elsewhere on April 9.

Nintendo set the Switch 2 price at $449.99, with a Mario Kart World bundle at $499.99. Mario Kart World itself costs $79.99.

Nintendo Switch 2 includes:

Niko Partners analyst Daniel Ahmad noted that Trump’s unexpected tariffs on countries like Vietnam, where Nintendo moved some Switch 2 production to avoid U.S. tariffs on China, may have prompted a strategic shift.

“Although Nintendo relocated some manufacturing to Vietnam to mitigate U.S. tariffs on China, the looming reciprocal tariffs before the Switch 2 reveal likely forced a global price adjustment,” Ahmad explained. “The tariffs on Vietnam and Japan are higher than anticipated, and Nintendo will face significant impacts if fully implemented.”

Nintendo fans and analysts now fear further price hikes for the Switch 2 and its games, amid backlash over the console’s initial pricing.

Will Nintendo Raise Switch 2 Prices Above $450 Due to Trump’s Tariffs?

YesNoIt depends (share your thoughts in the comments!)

AnswerSee Results

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 the next year, up from 35%. JPMorgan predicts a 60% likelihood of a U.S. and global economic downturn.

The BBC reports that Trump defended the tariffs, stating, “Sometimes you need tough measures to solve a problem.”

For more details, explore all announcements from the Switch 2 Nintendo Direct and expert insights on the Switch 2 price and Mario Kart World’s $80 price.