US trade duties crash shares of Japanese gaming companies: Sony shares down 10% and Nintendo down 7%
US President Donald Trump's recent decisions to impose new import duties caused a significant drop in shares of leading Japanese video game companies such as Sony and Nintendo. In particular, Sony's shares fell by 10% and Nintendo's by 7% on the Tokyo Stock Exchange.
Here's What We Know
The imposed duties provide for additional charges of up to 50% on imported goods, which directly affects companies that manufacture their products in Asia. This caused an overall decline in the Nikkei 225 index by 6%, as well as a drop in markets in South Korea, Taiwan and China.
Sony prepared in advance for the possible consequences by doubling its supply chain and stockpiling products before the introduction of duties, which temporarily protects the PlayStation 5 from price increases. However, if the situation does not stabilise, it may adjust its pricing policy.
Meanwhile, Nintendo has suspended pre-orders for the Switch 2 in the US, which may indicate a potential price increase ahead of launch.
It's Monday 10am in Japan where Japanese game stocks are currently reacting to these insultingly stupid tariffs like this:
- Dr Serkan Toto (@serkantoto) 7 April 2025
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 are doing even worse.
Source: @serkantoto
