Nintendo, Sony Stocks Dive on Trump Tariffs

Japanese video game firms experienced significant stock market declines following President Donald Trump's announcement of new tariffs.

The White House revealed targeted reciprocal tariffs affecting approximately 60 economies deemed as having unfair trade practices, set to take effect April 9. Japan faces a 24% tariff rate under these new measures.

Administration officials cited countries implementing higher import duties on American products, maintaining non-tariff trade barriers, or engaging in practices perceived as detrimental to U.S. economic interests.

Tariffs function as import taxes on specific goods. While supply chain businesses could absorb these costs, the additional expenses typically translate to higher consumer prices - particularly concerning for technology and gaming products.

Asian markets reacted strongly: Japan's Nikkei 225 dropped 7.8%, Australia's ASX 200 fell 4.2%, South Korea's Kospi declined 5.6%, while China's Shanghai Composite lost 7.3% and Taiwan's index plunged 9.7%. Hong Kong's Hang Seng plummeted 12.5% during afternoon trading.

Kantan Games CEO Dr. Serkan Toto reported April 7 opening figures for Japanese gaming stocks: Nintendo (-7.35%), Sony (-10.16%), Capcom (-7.13%), and Sega (-6.57%).

Monday 10am Japan time - gaming stocks react to new 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 gaming companies experiencing even steeper declines.

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

Nintendo recently delayed U.S. pre-orders for its Switch 2 console citing tariff uncertainties, maintaining its June 5 launch date while postponing the April 9 pre-order start exclusively in America. Global pre-orders continue as scheduled.

Nintendo priced the Switch 2 at $449.99, with a Mario Kart World bundle at $499.99. The standalone game retails for $79.99.

Nintendo Switch 2 package contents:

Switch 2 console
Joy-Con 2 controllers (left+right)
Joy-Con 2 Grip
Controller wrist straps
Switch 2 Dock
Ultra High-Speed HDMI cable
AC adapter
USB-C charging cable

Niko Partners analyst Daniel Ahmad noted that unexpected tariffs on Vietnam - where Nintendo relocated some Switch 2 production to avoid China tariffs - may force strategic adjustments.

"While diversifying production to Vietnam initially mitigated China tariff risks, these new reciprocal tariffs exceed expectations," Ahmad explained. "If fully implemented, Nintendo may need to reconsider global pricing structures beyond the announced $450 MSRP."

The gaming community expresses concern about potential Switch 2 price hikes following its controversial initial pricing reveal.

Will Nintendo Raise Switch 2's Price Above $450 Due to Tariffs?

YesNoDepends (explain in comments)

AnswerSee Results

Sony PlayStation production may also face impacts, including potential pricing adjustments for its $700 PS5 Pro. IGN has reached out for company commentary.

Goldman Sachs increased U.S. recession probability estimates to 45% (from 35%) within twelve months, with JPMorgan projecting 60% likelihood of global economic downturn.

BBC reports quote President Trump defending the tariffs: "Short-term economic medicine sometimes proves necessary for long-term solutions."

For additional coverage, see complete Switch 2 Nintendo Direct announcements and industry analysis of the console's pricing strategy.