After President Trump’s announcement of a sweeping new tariff scheme, stocks for several prominent Japanese video game companies, most notably Sony and Nintendo, have taken a significant hit. Concerns have been growing over possible tariffs ever since President Trump’s election, and those fears are now materializing. Japanese gaming giant Sony has experienced a substantial drop in its stock price following the U.S.’s introduction of a 24% reciprocal tariff against Japan, and the ripple effect is also being felt by others in the industry.
There were previous speculations that the tariffs could push the PS5 Pro’s price to nearly $1,000 if Trump’s proposed 60% tax on Chinese imports were to be enforced. With the newly enacted legislation, goods from China now face a combined tariff of 54%—a substantial rate, albeit less severe than the 2024 predictions. While Sony has yet to disclose how this will affect product pricing, the heightened tariffs have understandably influenced investor confidence.
Currently, Sony’s stock has fallen by 12.98% month-over-month on the Tokyo Stock Exchange. Nintendo has also been affected, but to a lesser degree, with a drop of 8.11%. Despite both companies showing profitability over the past six months, their shares saw a notable decline in late March and early April 2025, coinciding with President Trump’s announcement of the new tariffs. Although no changes to hardware pricing have been declared, Nintendo has delayed U.S. pre-orders for the Switch 2, aiming to evaluate the tariffs’ impact.
Earlier this year, Sony announced plans to boost its U.S. stock of PS5 consoles, a strategic move intended to sidestep potential tariff ramifications. Although it’s yet to be seen just how successful this strategy will be, it might offer some temporary relief for gamers worried about price hikes at the register. While higher tariffs don’t directly translate to increased costs for products, history shows companies often adjust prices in response to supply chain pressures from import duties. With a significant inventory already stateside, Sony could potentially keep prices stable for now, though future consoles might not enjoy the same protection once current stocks deplete.
Nintendo, on the other hand, expects the impact of tariffs on the upcoming Switch 2 to be small, thanks to its revised manufacturing approach. However, the company had aimed to circumvent tariffs by relocating some of its production from China to Vietnam and Cambodia. Those nations are now hit with import duties of 46% and 49%, respectively. Even though these rates are less hefty than those on Chinese imports, they’re still among the highest with the new tariff structure. What steps Nintendo and other gaming firms will take remains unclear. Judging by stock trends, the path ahead could be turbulent for Japan’s video game sector.
