Japan Game Stocks Dive on Trump Tariffs

Japanese video game firms experienced significant stock market declines following new tariff announcements by U.S. President Donald Trump.

The White House unveiled targeted reciprocal tariffs on approximately 60 nations it deemed "worst offenders," set to take effect April 9. Japan faces customized tariff rates of 24% under these measures.

Administration officials claim these nations impose higher tariffs on U.S. exports, maintain restrictive trade barriers, or engage in practices that undermine U.S. economic interests.

Tariffs function as import taxes on specific goods. While some businesses might absorb these costs, they typically result in higher consumer prices—particularly concerning for technology and gaming products.

Asian markets reacted sharply: 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 and Taiwan's Weighted Index plunged 7.3% and 9.7% respectively.

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

Japanese game stocks at 10am Monday reflect tariff impacts:

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 firms fared worse.

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

Nintendo previously stunned markets by delaying U.S. Switch 2 pre-orders—originally scheduled for April 9—citing tariff uncertainties, though maintaining its June 5 launch date.

The Switch 2 retails at $449.99, with a $499.99 Mario Kart World bundle. Standalone Mario Kart World costs $79.99.

Nintendo Switch 2 Includes:

Console unit
Joy-Con 2 controllers (pair)
Joy-Con 2 Grip
Controller straps
Switch 2 Dock
Ultra High-Speed HDMI cable
AC adapter
USB-C charging cable

Niko Partners analyst Daniel Ahmad noted Vietnam tariffs—where Nintendo relocated some Switch 2 production—could prompt pricing reassessments.

"While diversifying production to Vietnam mitigated China tariffs, reciprocal tariffs there and in Japan exceed projections," Ahmad explained. "If implemented fully, Nintendo must consider global price adjustments."

The tariff situation fuels concerns about potential Switch 2 price hikes beyond its controversial initial pricing.

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Sony's PlayStation division—including its $700 PS5 Pro—faces similar pricing concerns. IGN reached out for comment regarding potential U.S. price adjustments.

Economic forecasts worsened, with Goldman Sachs increasing U.S. recession probabilities to 45% (from 35%), and JPMorgan predicting 60% chances of global economic contraction.

President Trump defended the tariffs, telling BBC reporters that "temporary medicine" sometimes proves necessary for economic recovery.

For additional coverage, see key announcements from Nintendo's Switch 2 Direct and analyst perspectives on Switch 2 pricing.