Japanese Gaming Stocks Plunge on Trump Tariffs

Japanese video game stocks have taken a nosedive following the announcement of new U.S. tariffs by the Trump administration. The White House revealed what it calls "reciprocal tariffs" targeting approximately 60 nations, with Japan facing a hefty 24% rate starting April 9.

The Trump administration claims these measures address countries that either impose higher tariffs on American products, maintain trade barriers against U.S. goods, or engage in practices that allegedly undermine U.S. economic interests.

Tariffs function as import taxes that typically get passed down to consumers rather than absorbed by corporations. This economic ripple effect spells trouble for gaming enthusiasts, who may soon face higher prices for consoles, games, and accessories.

Asian financial markets reacted violently to the tariff news:

• Japan's Nikkei 225 plunged 7.8%
• Australia's ASX 200 dropped 4.2%
• South Korea's Kospi declined 5.6%
• China's Shanghai Composite fell 7.3%
• Taiwan's Weighted Index plummeted 9.7%
• Hong Kong's Hang Seng plunged 12.5% during afternoon trading

Game industry analyst Dr. Serkan Toto reported these staggering losses for major Japanese gaming corporations when markets opened April 7:

• Nintendo: -7.35%
• Sony: -10.16%
• Capcom: -7.13%
• Sega: -6.57%

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

The tariff turmoil has already impacted Nintendo's plans for its upcoming Switch 2 console. Unexpectedly delayed U.S. pre-orders, originally scheduled for April 9, have been postponed while the June 5 launch date remains unchanged. Company representatives cited tariff concerns as the reason for postponing only American pre-orders while sticking with the original schedule in other markets.

Nintendo revealed the Switch 2 will retail at $449.99 base price, with a Mario Kart World bundle priced at $499.99. The standalone Mario Kart World carries an $79.99 price tag.

Nintendo Switch 2 Contents:

• Switch 2 console
• Joy-Con 2 controller pair
• Joy-Con 2 Grip
• Joy-Con 2 wrist straps
• Switch 2 dock
• Ultra High-Speed HDMI cable
• AC adapter
• USB-C charging cable

Niko Partners analyst Daniel Ahmad previously warned about potential ripple effects from Trump's tariffs, especially considering Nintendo's partial manufacturing shift to Vietnam to circumvent U.S. tariffs on Chinese goods.

"Nintendo's Vietnam production plan was meant to offset Chinese tariffs, but these new reciprocal tariffs have exceeded expectations," Ahmad explained. "If fully implemented, they could force Nintendo to reconsider global pricing strategies beyond just the U.S. market."

The gaming community anxiously awaits Nintendo's next move, with many speculating about possible price hikes for both the console and its games following the controversial pricing reveal.

Will Nintendo Push Switch 2 Pricing Above $450 Due to Tariffs?

YesNoIt depends (explain in comments)

Sony also faces pricing uncertainties, particularly regarding its premium PlayStation 5 Pro console priced at $700. IGN has reached out to Sony for comment on potential U.S. price adjustments.

Financial institutions have revised their economic forecasts upward for potential recession risks:

• Goldman Sachs increased recession probability to 45% (from 35%)
• JPMorgan now predicts 60% chance of U.S./global economic downturn

President Trump defended the tariff strategy, reportedly telling the BBC that "sometimes you need to take medicine to cure an illness."

For additional coverage, see our reports on all Switch 2 announcements and expert analysis of the console's $450 price and $80 Mario Kart World game.