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Trump Tariffs Slam Japanese Gaming Stocks

by Aria Dec 07,2025

Video game companies in Japan experienced a significant stock market drop following the announcement of new tariffs by U.S. President Donald Trump.

White House officials indicated targeted reciprocal tariffs on approximately 60 nations they identify as the "worst offenders," set to take effect on April 9. Japan is among the countries facing these customized tariff rates, set at 24%.

Trump administration officials state these nations impose higher tariffs on U.S. exports, enforce "non-tariff" barriers against American trade, or have taken actions they believe undermine U.S. economic objectives.

Tariffs are essentially taxes applied to the cost of imported goods. While companies within the supply chain might absorb these expenses, the additional costs are typically passed on to consumers. Unfortunately for gamers, these price increases are likely to affect technology and gaming products.

Japan's Nikkei 225 index finished down 7.8%, Australia's ASX 200 declined by 4.2%, and South Korea's Kospi ended 5.6% lower. The Shanghai Composite closed 7.3% down, and the Taiwan Weighted Index dropped 9.7%. The Hang Seng Index 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 was down 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 video game industry by delaying pre-orders for the Nintendo Switch 2 in the U.S., citing tariff-related uncertainties. Pre-orders were scheduled to begin on April 9 but were postponed specifically in the U.S., though the June 5 release date remains unchanged. Pre-orders in other regions will start on April 9 as originally planned.

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.

What's Included with the Nintendo Switch 2:

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 had cautioned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo relocated some Switch 2 production to avoid U.S. tariffs on China, could prompt a reassessment.

"While the company has shifted some manufacturing to Vietnam to mitigate U.S. tariffs on China, the threat of reciprocal tariffs ahead of the Switch 2 reveal likely forced Nintendo to consider higher global pricing," Ahmad stated. "The reciprocal tariffs on Vietnam and Japan are more substantial than anticipated, and Nintendo will be significantly affected if these tariffs are fully implemented."

Nintendo fans and industry analysts are now worried that Nintendo may further increase the price of the Switch 2 and its games, especially after the console's pricing already faced criticism upon its unveiling.

Uncertainty also surrounds Sony, the manufacturer of PlayStation consoles, including the $700 PlayStation 5 Pro. IGN has contacted the company for comment regarding potential price increases in the U.S. market.

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

As reported by the BBC, Trump has justified the tariffs, remarking that "sometimes you have to take medicine to fix something."

For further details, see all the announcements from the Switch 2 Nintendo Direct, and expert opinions on the Switch 2 price and the $80 cost of Mario Kart World.

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