Nintendo, Sony and More Japanese Game Companies Suffer Stock Market Plunge as Trump's Tariffs Hit Hard

Video game companies across Japan are reeling from a significant stock market downturn triggered by U.S. President Donald Trump's tariffs. The White House has announced specific reciprocal tariffs on approximately 60 countries deemed the "worst offenders," set to take effect on April 9. Japan, facing a 24% tariff rate, is among the affected nations. These tariffs are a response to what U.S. officials perceive as higher tariffs on American goods, non-tariff barriers to U.S. trade, and actions that undermine U.S. economic objectives.

Tariffs are taxes levied on imported goods, and while businesses might absorb these costs, they are typically passed on to consumers. This could lead to higher prices for technology and gaming products, directly impacting gamers.

The repercussions were immediately felt in the stock market. Japan's Nikkei 225 index dropped 7.8%, Australia's ASX 200 fell 4.2%, South Korea's Kospi declined 5.6%, China's Shanghai Composite closed 7.3% lower, and Taiwan's Weighted Index lost 9.7%. In Hong Kong, the Hang Seng was down 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported the following declines in Japanese video game stocks on the morning of April 7:

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 global uncertainty. While pre-orders were initially set for April 9, they were postponed in the U.S., though the June 5 release date remains unchanged. Pre-orders will proceed as planned elsewhere on April 9.

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

**Nintendo Switch 2 includes:**

• 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 highlighted that the tariffs might force Nintendo to reconsider its pricing strategy. "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 explained. "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."

Concerns are growing among Nintendo fans and analysts that the price of the Switch 2 and its games could rise further, despite backlash to the console's initial pricing announcement.

Sony, which manufactures the $700 PlayStation 5 Pro, is also under scrutiny. IGN has reached out to Sony for comments on potential price increases in the U.S.

Economic forecasts have turned gloomier, with Goldman Sachs predicting a 45% chance of a U.S. recession in the next 12 months, up from 35%. JPMorgan now estimates a 60% chance of a U.S. and global economic downturn.

In defense of the tariffs, President Trump stated, "sometimes you have to take medicine to fix something," according to a BBC report.

For more information, 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.