Trump Tariffs Slash Japanese Game Giants' Stocks

Video game companies in Japan experienced a sharp decline in stock prices following the United States' unexpected announcement of reciprocal tariffs.

White House officials confirmed targeted reciprocal tariffs on approximately 60 nations they consider the most problematic, set to take effect on April 9. Japan is among those subject to the new custom rate of 24%.

The Trump administration claims these nations impose higher import duties on American products, erect non-tariff barriers to U.S. trade, or take actions that undermine U.S. economic objectives.

Tariffs function as taxes levied on imported goods. Although companies along the supply chain might absorb these expenses, the additional costs usually get passed on to consumers. Unfortunately for gamers, these price hikes are expected to affect electronics and video game products.

Japan's Nikkei 225 index finished down 7.8%, Australia's ASX 200 dropped 4.2%, and South Korea's Kospi fell 5.6%. The Shanghai Composite closed 7.3% lower, while Taiwan's Weighted Index dropped 9.7%. Hong Kong's Hang Seng was down 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, compiled the opening declines for Japanese video game stocks on the morning of April 7. Nintendo dropped 7.35%, Sony fell 10.16%, Capcom declined 7.13%, and Sega decreased 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

Last week, Nintendo surprised the industry by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff uncertainties. While pre-orders were scheduled to begin on April 9, the U.S. launch was postponed, though the June 5 release date remains unchanged. Other regions will begin pre-orders on April 9 as originally planned.

Nintendo announced the Switch 2 at $449.99, with a Mario Kart World bundle priced $499.99. Mario Kart World itself is priced $79.99.

Nintendo Switch 2 comes with the following:

Nintendo Switch 2 consoleJoy-Con 2 controllers (L+R)Joy-Con 2 GripJoy-Con 2 StrapsNintendo Switch 2 DockUltra High-Speed HDMI CableNintendo Switch 2 AC AdapterUSB-C Charging Cable

Niko Partners analyst Daniel Ahmad had warned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo moved some Switch 2 production to avoid U.S. tariffs on China, could force a reevaluation.

"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 said. "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."

Fans and market analysts now worry that Nintendo may raise Switch 2 and game prices even higher, despite already facing criticism over the console's announced pricing.

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Sony also faces uncertainty, as it manufactures PlayStation consoles, including the $700 PlayStation 5 Pro. IGN has reached out to Sony for comment on potential U.S. price increases.

Goldman Sachs now estimates a 45% probability of a U.S. recession within the next year, up from a previous forecast of 35%. JPMorgan places the likelihood of a U.S. and global downturn at 60%.

According to a BBC report, Trump defended the tariffs by stating, “sometimes you have to take medicine to fix something.”

For more details, see 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.