As the sun rose on Monday morning in Japan, stock markets experienced a significant downturn due to global financial uncertainty and the recent implementation of global tariffs by US President Donald Trump. This downturn has had a widespread impact on the Japanese stock market, including the video game sector. Companies such as Capcom, Nintendo, Sony, Bandai Namco, and others have all witnessed sharp declines in their stock values.
At the time of writing, the Japanese stock market has closed for the day at 3:30 PM, and the current drops are expected to be where things settle for now.
Japanese games industry consultant Dr. Serkan Toto highlighted the sharp declines in stock prices of various companies within a single day of trading. Here are the final figures for the day:
- Nintendo | -7.85%
- Sony | -10.4%
- Capcom | -6.61%
- Bandai Namco | -7.37%
- Square Enix | -5.62%
- Sega | -7.29%
- Koei Tecmo | -5.41%
The US imposition of tariffs on countries worldwide, especially on Saturday, has led to these significant drops in stock prices. With a 24% tariff on all goods (excluding auto imports, which face a 25% levy), most stocks in Japan have suffered losses. The Nikkei 225, Japan’s stock market index, has fallen by 7.83%.
The impact on the Japanese video game industry is substantial. While the increased cost of physical game copies in the US could deter some buyers, the rise in tariffs also affects the hardware used to play these games. This includes consoles like the Nintendo Switch 2 and PS5, as well as other gaming devices.
The US is a crucial consumer market for the video game industry, with significant revenue generated from game sales and microtransactions. However, with the looming threat of a recession, the industry faces a challenging road ahead.
As these tariffs persist, the recovery of stock prices remains uncertain, casting a shadow over the future of the video game industry.
