Nintendo, Sony and More Japanese Game Companies Suffer Stock Market Plunge as Trump's Tariffs Hit Hard

Video game companies across Japan have suffered a dramatic stock market plunge sparked by U.S. President Donald Trump's tariffs.

White House officials signalled what they describe as specific reciprocal tariffs on roughly 60 of the "worst offenders" to go into effect on 9 April. Japan is one of the countries subject to these customised tariff rates, at 24%.

Trump's officials say these countries charge higher tariffs on U.S. goods, impose "non-tariff" barriers to U.S. trade, or have otherwise acted in ways they feel undermine American economic goals.

Tariffs are essentially taxes placed on the cost of importing certain goods. While it's possible for companies in the supply chain to simply eat these costs, more often than not these taxes are passed onto consumers. And unfortunately for gamers, rising prices are very likely to impact tech and gaming goods.

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

Dr. Serkan Toto, CEO of Kantan Games, rounded up the decline in video game stocks based in Japan as the market opening in the morning of April 7. Nintendo was down 7.35%, Sony 10.16%, Capcom 7.13%, and Sega 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 shocked the video game world by announcing a delay to pre-orders of the Nintendo Switch 2 in the U.S., blaming tariffs and the uncertainty they have caused across the world. The pre-orders were set to go live on April 9, but in the U.S. specifically they were postponed, with the June 5 release date said to be on-track. Pre-orders go live elsewhere on April 9 as planned.

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

Nintendo Switch 2 comes with the following:

• 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 warned that Trump's surprise tariffs on countries such as Vietnam, where Nintendo had shifted some of its Switch 2 manufacturing in anticipation of U.S. tariffs on China, might have caused a rethink.

"While the company has shifted some of its manufacturing to Vietnam to offset U.S. tariffs on China, the looming threat of reciprocal tariffs prior to the Switch 2 showcase will have also forced Nintendo to consider a higher price for the rest of the world," Ahmad said. "The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect."

Nintendo fans and analysts are now concerned Nintendo will raise the price of the Switch 2 and its games even further, even as it suffers a backlash to its pricing following the console’s reveal.

There are question marks over Sony, too, which manufactures PlayStation consoles, including the $700 PlayStation 5 Pro. IGN has asked the company if it has any comment on the prospect of increased prices in the U.S.

Goldman Sachs now forecasts there is a 45% chance the U.S. will fall into recession in the next 12 months, up from a previous estimate of 35%. JPMorgan now sees a 60% chance of a U.S. and global economic downturn.

According to a report by the BBC, Trump has defended the tariffs, saying "sometimes you have to take medicine to fix something."

For more, check out everything announced at the Switch 2 Nintendo Direct, and what the experts have to say about the Switch 2 price and Mario Kart World’s $80 price tag.

Photo by DIMITAR DILKOFF/AFP via Getty Images.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.