US TARIFFS SEND NINTENDO AND SONY STOCKS CRASHING DOWN

Recent developments regarding trade tariffs imposed by the US government have led to a notable drop in Japanese gaming stocks. Major companies like Nintendo and Sony experienced significant stock losses, with Nintendo falling by 7.35% and Sony by 10.16%. Analysts suggest these tariffs, particularly targeting regions crucial for video game hardware production, will have a substantial negative impact on the industry. Concerns about pricing strategies have also arisen, with Nintendo delaying pre-orders for the Switch 2 in the US due to these new tariffs and evolving market conditions. This situation raises critical questions about the future of pricing and availability of new gaming consoles and accessories.

US tariffs could lead to higher prices for upcoming video game consoles and accessories as companies assess the impact on profit margins. Companies might need to increase prices to absorb the costs of the tariffs, which vary significantly based on production location. Without a clear resolution to these tariffs, uncertainty looms over pricing strategies for gaming hardware.

The impact of these US tariffs arises amidst the anticipated release of the Nintendo Switch 2. Set to launch on June 5, 2025, the Switch 2 is seen as a significant console for the gaming market, following the success of its predecessor. The decision to delay pre-orders highlights the company's cautious approach in handling economic uncertainties while trying to launch a competitive gaming system in a turbulent market.