Trump Tariffs Hit Sony, Nintendo Shares

Video game corporations throughout Japan have experienced a significant stock market downturn triggered by tariffs imposed by U.S. President Donald Trump.

White House officials indicated what they term as targeted reciprocal tariffs on approximately 60 nations identified as the "most problematic," scheduled to take effect on April 9. Japan is among the countries facing these tailored tariff rates, set at 24%.

Trump's administration states these nations impose higher tariffs on American products, create "non-tariff" obstacles to U.S. commerce, or have otherwise behaved in manners they believe undermine U.S. economic objectives.

Tariffs are essentially taxes applied to the cost of importing specific goods. Although companies within the supply chain might absorb these expenses, typically these taxes are transferred to consumers. Unfortunately for gamers, higher costs are very likely to affect technology and gaming products.

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

Dr. Serkan Toto, CEO of Kantan Games, summarized the drop in Japanese video game stocks as markets opened on the morning of April 7. Nintendo fell 7.35%, Sony dropped 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 gaming world by announcing a delay to Nintendo Switch 2 pre-orders in the U.S., citing tariffs and the global uncertainty they have created. Pre-orders were scheduled to begin on April 9, but specifically in the U.S. they were postponed, though the June 5 release date is reportedly still on track. Pre-orders will proceed as planned in other regions on April 9.

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

The Nintendo Switch 2 package includes the following:

Nintendo Switch 2 console
Joy-Con 2 controllers (Left and Right)
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 had cautioned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo relocated some Switch 2 production anticipating U.S. tariffs on China, might have prompted a reassessment.

"While the company has shifted some manufacturing to Vietnam to mitigate U.S. tariffs on China, the impending threat of reciprocal tariffs before the Switch 2 showcase would have also pressured Nintendo to consider a higher global price," Ahmad stated. "The reciprocal tariffs on Vietnam and Japan are higher than anticipated, and Nintendo will feel the effect if these tariffs are fully implemented."

Nintendo fans and analysts now worry that Nintendo may further increase the Switch 2 and its games' prices, even as it faces criticism over its pricing following the console's unveiling.

Do You Think Nintendo Will Raise the Switch 2 Price Above $450 in Reaction to Trump's Tariffs?

YesNoIt depends (let us know why in the comments!)

AnswerSee Results

There are uncertainties surrounding Sony as well, which manufactures PlayStation consoles, including the $700 PlayStation 5 Pro. IGN has inquired if the company has any comments regarding potential price increases in the U.S.

Goldman Sachs now predicts a 45% likelihood of the U.S. entering a recession within the next year, up from a prior estimate of 35%. JPMorgan now anticipates a 60% probability of a U.S. and global economic slump.

According to a BBC report, Trump has defended the tariffs, stating "sometimes you must take medicine to fix something."

For additional details, see all announcements from the Switch 2 Nintendo Direct, and expert opinions on the Switch 2 price and Mario Kart World’s $80 price point.