Japanese video game firms have experienced significant stock market declines following the announcement of new U.S. tariffs by President Trump.

White House officials revealed targeted reciprocal tariffs affecting approximately 60 nations deemed "trade violators," set to take effect April 9. Japan faces a customized tariff rate of 24% under these measures.

Administration officials claim these nations impose higher duties on American exports, maintain restrictive non-tariff barriers, or engage in practices that allegedly undermine U.S. economic interests.

Tariffs function as import taxes, potentially increasing product costs. While supply chain businesses might absorb these expenses temporarily, consumers typically bear the financial burden ultimately - potentially affecting electronics and gaming hardware pricing.

Major Asian markets plummeted sharply: Japan's Nikkei 225 dropped 7.8%, Australia's ASX 200 declined 4.2%, South Korea's Kospi fell 5.6%. The Shanghai Composite retreated 7.3%, while Taiwan's Weighted Index suffered a 9.7% loss. Hong Kong's Hang Seng plunged 12.5% during afternoon trading.

Dr. Serkan Toto, Kantan Games CEO, reported Japanese gaming stock declines at market open on April 7: Nintendo (-7.35%), Sony (-10.16%), Capcom (-7.13%), and Sega (-6.57%) all experienced substantial drops.

Japanese gaming stocks at 10am Monday reflect market reaction to controversial tariff announcements:

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 show even steeper declines.

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

Nintendo recently surprised the industry by delaying U.S. Switch 2 pre-orders, citing tariff uncertainties. While global pre-orders maintain their April 9 schedule, American reservations were postponed despite the June 5 launch date remaining unaffected.

Nintendo priced the Switch 2 at $449.99, with a Mario Kart World bundle retailing for $499.99. Standalone Mario Kart World carries an $79.99 MSRP.

Nintendo Switch 2 package includes:

Switch 2 console
Joy-Con 2 controllers (L+R)
Joy-Con 2 Grip accessory
Controller wrist straps
Switch 2 docking station
Ultra High-Speed HDMI cable
AC power adapter
USB-C charging cable

Industry analyst Daniel Ahmad from Niko Partners cautioned that unexpected Vietnamese tariffs could complicate Nintendo's manufacturing strategy, noting the company had relocated some Switch 2 production from China to Vietnam anticipating U.S. trade policies.

"While Nintendo diversified production to Vietnam anticipating Chinese tariffs, these new reciprocal tariffs create additional pricing pressure," Ahmad explained. "With Vietnam and Japan tariffs exceeding projections, Nintendo may need to reconsider global pricing if measures take full effect."

Consumer concerns mount regarding potential Switch 2 price hikes following the console's controversial initial pricing reveal, with analysts monitoring how Nintendo might respond to these tariff pressures.

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Sony's PlayStation division also faces uncertainty amid tariff pressures affecting its $700 PS5 Pro manufacturing. IGN has requested comment regarding potential U.S. price adjustments.

Economic analysts revised recession probabilities upward - Goldman Sachs now estimates 45% likelihood (from 35%), while JPMorgan predicts 60% chance of U.S. and global economic contraction.

BBC reports quote President Trump defending tariff measures: "Economic correction sometimes requires difficult remedies."

For additional coverage, explore full Switch 2 announcement details and industry expert analyses regarding console pricing and Mario Kart World's premium cost.