Japanese Game Giants like Nintendo, Sony Hit by Stock Plunge Amid Trump's Tariffs

The recent imposition of tariffs by U.S. President Donald Trump has sent shockwaves through the Japanese video game industry, causing a significant drop in stock market values. These tariffs, set to take effect on April 9, target 60 countries, including Japan, with a 24% custom rate. The rationale behind these tariffs, as explained by White House officials, is to counteract high tariffs on U.S. goods, non-tariff barriers to U.S. trade, and actions perceived as detrimental to American economic interests.

Tariffs essentially function as taxes on imported goods, often leading companies to pass these additional costs onto consumers. This increase in costs is particularly concerning for the gaming and tech sectors, where price hikes could directly affect gamers.

The impact on Asian stock markets was immediate and severe. Japan's Nikkei 225 index plummeted by 7.8%, while Australia's ASX 200 and South Korea's Kospi fell by 4.2% and 5.6%, respectively. The Shanghai Composite in China dropped 7.3%, and Taiwan's Weighted Index saw a significant decline of 9.7%. Hong Kong's Hang Seng index was down by a staggering 12.5% during afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, provided a detailed look at the impact on Japanese video game stocks at the market's opening on April 7. Major companies like Nintendo experienced a 7.35% drop, Sony a 10.16% decline, Capcom a 7.13% fall, and Sega a 6.57% decrease. Other notable drops included Bandai Namco at 7.03%, Konami at 3.93%, Koei Tecmo at 5.83%, and Square Enix at 5.23%. Mobile game companies faced even more severe losses.

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

In response to these tariffs, Nintendo announced a delay in U.S. pre-orders for the Nintendo Switch 2, originally set for April 9, due to the uncertainty caused by the tariffs. The release date remains on track for June 5, with pre-orders proceeding as planned in other regions. The Nintendo Switch 2 is priced at $449.99, with a Mario Kart World bundle available for $499.99 and the game itself at $79.99.

The Nintendo Switch 2 package includes the console, Joy-Con 2 controllers (L+R), a Joy-Con 2 Grip, Joy-Con 2 Straps, a Nintendo Switch 2 Dock, an Ultra High-Speed HDMI Cable, a Nintendo Switch 2 AC Adapter, and a USB-C Charging Cable.

Niko Partners analyst Daniel Ahmad noted that Nintendo had moved some manufacturing to Vietnam to mitigate U.S. tariffs on China, but the unexpected reciprocal tariffs on Vietnam and Japan have added further complexity to pricing strategies. Ahmad suggests that these tariffs could force Nintendo to increase prices globally.

This situation has sparked concerns among Nintendo fans and analysts about potential price increases for the Switch 2 and its games, especially following a backlash to the initial pricing announcement.

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

Economic forecasts have become more pessimistic, with Goldman Sachs now estimating a 45% chance of a U.S. recession within the next 12 months, up from 35%. JPMorgan has raised its estimate to a 60% chance of a U.S. and global economic downturn.

In defense of the tariffs, President Trump stated, "sometimes you have to take medicine to fix something," according to a BBC report.

For more information, you can explore 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.