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

It’s been a whirlwind 48 hours for economics enthusiasts and Nintendo fans alike. On Wednesday, we discovered that the Nintendo Switch 2 would be priced at $450 in the United States—a figure that analysts attribute to anticipated tariffs, inflation, competition, and rising component costs. Then, late last night, the Trump Administration announced sweeping 10% tariffs on nearly every country, with significantly higher tariffs targeting nations like China, the EU, Japan, Vietnam, Canada, Mexico, and many others. In a swift response, China announced a 34% reciprocal tariff on all U.S. goods this morning. Just hours later, Nintendo decided to postpone pre-orders for the Nintendo Switch 2 in the U.S. as it assesses the impact of these new tariffs on its plans.

This unprecedented scenario has left analysts, experts, and the public grappling to understand its ramifications. Just 30 minutes before Nintendo’s announcement, I spoke with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to discuss the broader impact of these tariffs on the gaming industry.

The ESA is still navigating the potential outcomes of these developments. Quinn explained that while tariffs were anticipated due to past actions by the Trump administration and campaign promises, the exact repercussions remain uncertain. She highlighted the expectation of retaliatory measures from countries like China and the possibility of further U.S. tariffs. However, the ESA is confident 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,” Quinn stated. “And so our goal is to work with the administration, to work with other elected officials to try to find a solution that doesn't damage U.S. industries, U.S. business, but also American gamers and families.”

Quinn emphasized that the impact extends beyond just the cost of gaming systems. “It’s hard to imagine a world where tariffs like these don’t impact pricing,” she noted. Consumer spending, company revenue, job security, R&D investment, and the design of future consoles are all interconnected and at risk. “The entire consumer ecosystem is connected,” she affirmed.

In response, the ESA has taken several steps, though Quinn admits it's been challenging to get started. With the Trump administration having been in office for only two months, and most of the cabinet being new, the ESA has struggled to build on past relationships. However, they are actively seeking to establish new connections and engage in public-private sector dialogues to highlight the potential impact on businesses and consumers.

Quinn mentioned the ESA’s recent collaboration with other trade associations to express concerns to U.S. Trade Representative Jamieson Greer before the tariff news broke. They are also seeking meetings with various legislators and administration members to discuss these issues. When asked if these efforts were being heard, Quinn confirmed, “Yes. I can tell you conversations are happening with... I don't want to say every level. I've not met with Trump, right? So I don't want to say every level of government, but certainly we've met with members of the administration. We've met with employees at the White House, we've met with employees at USTR [the office of the United States Trade Representative], so yes, we are having conversations and we're also doing that in partnership with other associations to make sure that... This isn't a video game issue. I represent the video game industry, so I'm very aware of the impact on the video game industry, the potential impact, but it's not a video game industry. This is going to affect all consumer products from food to fashion to electronics.”

For concerned consumers, Quinn recommends 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.”

Nintendo’s decision to pause pre-orders for the Nintendo Switch 2 came shortly after our conversation. While the ESA does not comment on actions by individual companies, Quinn addressed the broader impact of tariffs on the industry. “You know what? It's been interesting with media coverage around video games and tariffs because just 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.

“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.”