Japanese Game Giants' Stocks Plummet Amid Trump's Tariffs

The video game industry in Japan has experienced a significant stock market decline due to the recent announcement of U.S. President Donald Trump's tariffs. These tariffs, set to take effect on April 9, target 60 countries labeled as "worst offenders" with a 24% tariff rate imposed on Japan. The rationale behind these tariffs, as stated by White House officials, is to counteract high tariffs on U.S. goods, non-tariff trade barriers, and actions perceived to undermine American economic objectives.

Tariffs, essentially taxes on imported goods, typically result in increased costs for consumers as businesses pass these expenses along. This is particularly concerning for the gaming community, as tech and gaming products are likely to see price hikes.

The impact of these tariffs was immediately felt across Asian stock markets. Japan's Nikkei 225 index dropped by 7.8%, Australia's ASX 200 fell by 4.2%, and South Korea's Kospi decreased by 5.6%. The Shanghai Composite in China closed down 7.3%, while Taiwan's Weighted Index lost 9.7%. Hong Kong's Hang Seng Index saw a significant decline of 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, provided a snapshot of the declines in Japanese video game stocks at the market opening on April 7. Notable drops included Nintendo at 7.35%, Sony at 10.16%, Capcom at 7.13%, and Sega at 6.57%. Other companies like Bandai Namco, Konami, Koei Tecmo, and Square Enix also saw their stocks fall significantly.

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. due to these tariffs and the global uncertainty they've created. While pre-orders were set to begin on April 9 globally, they were postponed in the U.S., with the console's release date of June 5 remaining unchanged. The Nintendo Switch 2 is priced at $449.99, with a Mario Kart World bundle at $499.99 and the game itself at $79.99.

The Nintendo 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 pointed out that Nintendo had shifted some manufacturing to Vietnam to mitigate U.S. tariffs on China. However, with the new tariffs on Vietnam and Japan, Ahmad suggested that Nintendo might need to increase prices globally. "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," he said.

Concerns are growing among Nintendo fans and analysts that the price of the Nintendo Switch 2 and its games could rise even further, especially given the backlash to the initial pricing announcement.

There are also concerns about Sony, which produces the PlayStation 5 Pro priced at $700. IGN has reached out to Sony for comments on potential price increases in the U.S.

Financial forecasts have also been affected, with Goldman Sachs now predicting a 45% chance of a U.S. recession within the next 12 months, up from 35%. JPMorgan sees a 60% chance of a global economic downturn.

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

For more detailed 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.