Trump Tariffs Trigger Steep Decline in Japanese Gaming Stocks

Japanese video game companies faced a sharp stock market drop following U.S. President Donald Trump's tariff announcement.

White House officials outlined targeted reciprocal tariffs on approximately 60 countries deemed significant trade violators, effective April 9. Japan faces a 24% tariff rate under this policy.

Trump's team claims these nations impose higher tariffs on U.S. goods, maintain non-tariff trade barriers, or otherwise hinder American economic interests.

Tariffs act as taxes on imported goods, often increasing consumer prices as companies pass on the added costs. Gamers are likely to see higher prices for tech and gaming products as a result.

Japan’s Nikkei 225 index fell 7.8%, Australia’s ASX 200 dropped 4.2%, and South Korea’s Kospi declined 5.6%. China’s Shanghai Composite closed down 7.3%, Taiwan’s Weighted Index lost 9.7%, and Hong Kong’s Hang Seng plummeted 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported declines in Japanese video game stocks at market open on April 7: Nintendo fell 7.35%, Sony 10.16%, Capcom 7.13%, and Sega 6.57%.

At 10 a.m. Monday in Japan, local game stocks reacted sharply to these misguided tariffs:

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%

Mobile game companies faced even steeper losses.

— Dr. Serkan Toto (@serkantoto) April 7, 2025

Last week, Nintendo stunned the gaming community by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff-related uncertainty. Originally planned for April 9, U.S. pre-orders are postponed, though the June 5 release remains on schedule. Pre-orders proceed as planned elsewhere on April 9.

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

Nintendo Switch 2 includes:

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 cautioned that Trump’s unexpected tariffs on countries like Vietnam, where Nintendo shifted some Switch 2 production to avoid U.S. tariffs on China, likely prompted a strategic reassessment.

“Although Nintendo moved some manufacturing to Vietnam to mitigate U.S. tariffs on China, the looming reciprocal tariffs before the Switch 2 reveal likely pushed Nintendo to consider higher global pricing,” Ahmad noted. “The tariffs on Vietnam and Japan exceeded expectations, and Nintendo will face significant impacts if fully implemented.”

Nintendo fans and analysts now fear further price hikes for the Switch 2 and its games, especially after backlash over the console’s initial pricing.

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

Goldman Sachs now estimates a 45% chance of a U.S. recession within the next 12 months, up from 35%. JPMorgan predicts a 60% likelihood of a U.S. and global economic downturn.

According to the BBC, Trump defended the tariffs, stating, “Sometimes you need tough measures to solve big problems.”

For more, explore all announcements from the Switch 2 Nintendo Direct and expert insights on the Switch 2 price and Mario Kart World’s $80 price.