ESA on Trump Tariffs: 'More Than Just Switch 2'

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans alike. On Wednesday, it was revealed that the Nintendo Switch 2 would retail at a steep $450 in the United States. Analysts attribute this high price to a combination of factors, including anticipated tariffs, inflation, competition, and the rising cost of components.

The situation escalated further when, late last night, the Trump Administration unveiled expansive 10% tariffs targeting nearly every country, with significantly higher tariffs imposed on nations such as China, the EU, Japan, Vietnam, Canada, Mexico, and others. In a swift response, China declared this morning a 34% reciprocal tariff on all U.S. goods. Amidst this chaos, Nintendo announced mere hours ago that it would be delaying Nintendo Switch 2 pre-orders in the U.S. to assess the impact of these tariffs on its console strategy.

This unprecedented scenario has left analysts, experts, and the public grappling to understand its ramifications. Just 30 minutes before Nintendo's surprising pre-order delay announcement, I had a conversation with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to delve into the broader implications of these tariffs on the gaming industry.

The ESA, much like everyone else, is still piecing together how these developments will unfold. Aubrey Quinn shared that while they anticipated some form of tariffs due to Trump's previous actions and campaign rhetoric, the exact nature and extent of the retaliation from countries like China, as well as potential future U.S. levies, remain uncertain.

Quinn expressed the ESA's firm belief that these tariffs will negatively affect the video game industry. "We really are, at this point, just watching and trying not to have knee-jerk reactions, because we don't think that what President Trump announced this week is the end of the story, but what was announced this week and the tariffs as outlined, we do expect these tariffs will have a real and detrimental impact on the industry and the hundreds of millions of Americans who love to play games," she stated. The ESA aims to collaborate with the administration and elected officials to find a solution that protects U.S. industries, businesses, and gamers.

Beyond just the pricing of gaming systems, Quinn highlighted the broader economic impact. "It's hard to imagine a world where tariffs like these don’t impact pricing," she noted. She further explained that consumer spending would be affected, subsequently impacting company revenues, employment, research and development, and even the design of future consoles. "The entire consumer ecosystem is connected," she emphasized.

In response, the ESA has been proactive, despite the challenges of dealing with a relatively new Trump administration. Quinn acknowledged the difficulty in establishing connections with the newly appointed officials but affirmed their commitment to dialogue with relevant authorities. "We know who the conversations need to be happening with, and we are working on making connections and making sure that they understand that we are eager to work with them to find solutions," she concluded.

The ESA has already engaged with U.S. trade representative Jamieson Greer and is seeking further meetings with legislators and administration members. When asked about the effectiveness of these efforts, Quinn confirmed that discussions are taking place across various levels of government. She stressed that this issue transcends the video game industry, affecting all consumer products from food to fashion to electronics.

For concerned consumers, Quinn recommended reaching out to their representatives through letters, calls, emails, or social media to voice their concerns. "I think the more members of government, elected officials, and their staff who hear that their constituents are concerned, the more likely we are to be heard and to potentially make an impact," she advised.

Nintendo's decision to pause Nintendo Switch 2 pre-orders came just minutes after our discussion concluded. When I sought further comment from Quinn on this development, she stated that the ESA does not comment on the actions of individual companies. However, regarding the Nintendo Switch 2's pricing, she noted, "It's been interesting with media coverage around video games and tariffs because of the unfortunate coincidental timing that the Switch [2 reveal] was the same day as President Trump's announcement. There are so many devices we play video games on. There are other consoles, but as I was saying, VR headsets, our smartphones, people who love PC games, if we think it's just the Switch, then we aren't taking it seriously. This is going to have an impact."

Quinn emphasized the industry-wide impact, stating, "And even American-based companies, they're getting products that need to cross into American borders to make those consoles, to make those games. And so there's going to be a real impact regardless of company. This is company-agnostic, this is an entire industry. There's going to be an impact on the entire industry."