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[ArtHands]

Japanese Gaming Companies' Shares Tank Due to US Tariffs

The Japanese gaming companies (Nintendo, Sony, SEGA, CAPCOM, Square Enix, KONAMI, Koei Tecmo, Bandai Namco) flounder after the US tariffs.

wccftech.com

The burden of the US tariffs enacted by President Donald Trump is taking a heavy toll on the shares of Japanese gaming companies today. Sony was hit the hardest, losing just over 10% of its market value in a single session. Nintendo isn't far off, losing 7.85% today.

Koei Tecmo, known for Dynasty Warriors, Ninja Gaiden, and Atelier among others, is losing 7.63%. Bandai Namco, publisher of franchises like Ace Combat, Dark Souls, Dragon Ball, and Tekken just to name a few, is losing 7.37%. SEGA Sammy, the legendary publisher of franchises like Shenmue, Virtua Fighter, Like a Dragon, Sonic, and Total War, is close by with -7.29%. CAPCOM, another revered Japanese gaming company (Resident Evil, Devil May Cry, Monster Hunter, Street Fighter, etc.), loses 6.61%. Square Enix (Final Fantasy, Dragon Quest, Star Ocean) loses 5.62%. Lastly, KONAMI is currently down 'only' 5.19%. The latter company has relied less on videogaming for some time, although that is changing rapidly with the revival of beloved franchises such as Silent Hill and Metal Gear Solid.

 

[Tiago Rodrigues]

We love the smell of a pre-recession market right at the beginning of the week.

 

[Mownoc]

Sony is hit the hardest due to all of its other businesses being impacted. TV's, Cameras, Headphones, Speakers, Phones on top of the gaming hardware.

In terms of video games alone Nintendo is in the worst position due to them gearing up for a new console launch.

 

[Tiago Rodrigues]

Sony is hit the hardest due to all of its other businesses being impacted. TV's, Cameras, Headphones, Speakers, Phones on top of the gaming hardware.

In terms of video games alone Nintendo is in the worst position due to them gearing up for a new console launch.

It sucks how all these new consoles have been impacted due to multiple things:

PS5 and Series consoles: Covid, semiconductor production issues
Switch 2: Trump destroying the market.

 

[DenchDeckard]

I bet all these companies really like America right now.

Sucks major balls.

 

[PeteBull]

I bet all these companies really like America right now.

Sucks major balls.

Companies just like money, that is it, if they could make a deal with literal devil that brings them record profits, they will gladly do it, in a heartbeat

 

[DenchDeckard]

If this continues, and I do feel to an extent that America's time in the sun is on a decline. All big civilisations before our modern day one has seen super powers come and go. Maybe this is America's time.

 

[Fabieter]

The whole world is down 5 to 10% so its weird to single out a single sector/country and even worse a single company.

 

[StueyDuck]

I'm not gonna react to reactionists and the reactionary market a few days after a major event.

lets give it a bit of time to see how things are gonna settle before screaming doom and gloom and smearing our faeces on our faces.

 

[LazyParrot]

If Japan is losing, then America must surely be winning.

 

[DenchDeckard]

I'd love to see a 30's or 40s year old president.

 

[Spukc]

If Japan is losing, then America must surely be winning.

 

[Astray]

The whole world is down 5 to 10% so its weird to single out a single sector/country and even worse a single company.

ArtHands has been starved of trolling content. Please be kind to him.

 

[Doom85]

 

[Onironauta]

I'd love to see a 30's or 40s year old president.

As if Vance would be any better, it's not an age issue

 

[QLQ]

Thanks Agent Donaldovich Trumponov.

 

[adamsapple]

 

[Cyberpunkd]

Do you think the global economy prior was in amazing shape?

Surely better than it is today! Also:

 

[Tiago Rodrigues]

Do you think the global economy prior was in amazing shape?

Have you seen what's happening since last week?

 

[Unknown?]

If this continues, and I do feel to an extent that America's time in the sun is on a decline. All big civilisations before our modern day one has seen super powers come and go. Maybe this is America's time.

This was always going to happen unless something big changed. You don't rack up 36 trillion in debt and continue on just fine.

www.usdebtclock.org

 

[StueyDuck]

Surely better than it is today! Also:

Is it, though? rising prices globally (as seen by NS2)

A heavy push for "Green energy" then led to China manufacturing all the components and most of the oil and gas from places like Russia, Saudi Arabia.

All Chips and electronics are manufactured in China, and Most medical pharmaceuticals are manufactured in India. We have singular countries controlling the entire worlds production due to what came before.

The global economy was always going to hit a recession; D Trump just lit the fuse, that's all.

I hope to god his strategy works because the doing-nothing strategy prior was just causing global wars and raising prices.

 

[DenchDeckard]

As if Vance would be any better, it's not an age issue

I dont follow politics in general. Maybe thats a really bad thing on my part but I try to avoid it. I have no real idea of Vance outside of hearing the name.

I was just saying a decent 30 to 40 year old or even 50 year old that is more in touch with the people and closer to middle aged or so.

 

[StueyDuck]

Have you seen what's happening since last week?

Markets being reactionary...

yes... they tend to do that.

 

[StereoVsn]

Do you think the global economy prior was in amazing shape?

US initially after Trump's election was projected to have 2-3% growth, avoid recession, maintain low level of unemployment and mostly lower inflation (if slower than originally projected). Hence the market highs.

All of the above have been shot with a cannon.

 

[StereoVsn]

Markets being reactionary...

yes... they tend to do that.

For once they are being rational. We will see another 5%+ drop in US today. This can last for years, and even a decade or more.

And stagflation might be in the cards.

 

[Guilty_AI]

Have you seen what's happening since last week?

Have you seen what's happening for the last 5 years?

 

[StueyDuck]

US initially after Trump's election was projected to have 2-3% growth, avoid recession, maintain low level of unemployment and mostly lower inflation (if slower than originally projected). Hence the market highs.

All of the above have been shot with a cannon.

Things have definitely been shaken on its head.

but those projections are often from data that can be manipulated to give a positive outcome. Just reminds me of when the job numbers were suddenly readjusted for like 100s of thousands less employed than before, and that was like last year.

 

[Gamerfan81]

Won't get too much into the political side of it, but Japan's Prime Minister addressed the parliament and called it a national crisis the other day.

 

[StueyDuck]

For once they are being rational. We will see another 5%+ drop in US today. This can last for years, and even a decade or more.

And stagflation might be in the cards.

I mean that is all dependent on how companies react, if they truly do bring jobs back to the US then Stagflation can be avoided.

recession, globally was inevitable however. it's gonna happen, it's been on the cards for years now post covid.

 

[Tiago Rodrigues]

Have you seen what's happening for the last 5 years?

Stocks hitting all-time highs? Yeah...i saw it.

 

[StereoVsn]

I mean that is all dependent on how companies react, if they truly do bring jobs back to the US then Stagflation can be avoided.

recession, globally was inevitable however. it's gonna happen, it's been on the cards for years now post covid.

Nobody is bringing jack shit anywhere because of utter uncertainty. If they wanted to do that it would take years and for a lot of things we just don't have the supply chains.

It would take years or decades to build these. There is no magic and implementation of tariffs should have allowed much more gradual curve. Auto industry for example in Michigan (and elsewhere) will get completely whacked between price increases and reduced demand.

And tariff walls in the past made US manufacturers into very uncompetitive entities with Unions greatly contributing to that.

Anyways , the smarter thing would be to introduce VAT into US, but that's hard. Asking Grok at the last minute to come up with 5th grade understanding of trade is easy.

 

[Euler007]

Made the mistake of looking at my retirement account balance this morning.

 

[Allandor]

I guess we won't see a switch 2 launch in the US this year. Nintendo can also sell out it product outside the US. Might be a better launch for the rest of the world.
Problem is, who buys a new console while one man hit the world with a recession. Switch 2 might be a bit to expensive for the time.

 

[Great Auk]

Stocks hitting all-time highs? Yeah...i saw it.

And do you think the stock market doing well these past 5 years reflected how the average person's economic status has been as well? Do you think the average person is doing better today or in 2019?

"The stock market is higher today, so they must be doing better as well!"

"Inflation, energy costs, cost of living, etc. must be better today since the stock market is up!"

The stock market does not reflect the status of the average person's life. These are mostly rich people panicking that they won't be able to exploit third world labor and lax/nonexistent environmental laws to the extent that they have been enjoying the last few decades.

For the record, I don't agree with across the board tariffs.

 

[StueyDuck]

Nobody is bringing jack shit anywhere because of utter uncertainty. If they wanted to do that it would take years and for a lot of things we just don't have the supply chains.

It would take years or decades to build these. There is no magic and implementation of tariffs should have allowed much more gradual curve. Auto industry for example in Michigan (and elsewhere) will get completely whacked between price increases and reduced demand.

And tariff walls in the past made US manufacturers into very uncompetitive entities with Unions greatly contributing to that.

Anyways , the smarter thing would be to introduce VAT into US, but that's hard. Asking Grok at the last minute to come up with 5th grade understanding of trade is easy.

Tariffs and even VAT aren't certain fixes, that's the thing.

What came prior was such a fuckup on a global scale that the outcome was only ever going to be recession.

You are looking at it very much through an American lens, I am saying globally, before trumps tariffs it's not like we all had it great.

The whole point of BRICS is that the globalisation and tech giant economy was just fucking over everyone.

Someone had to do something, and that's why i hope to god trump has a plan and things work out, only time will tell. But paying R2000 for Mario Kart World when less then 10 years ago Nintendo games were R800 shouldn't be seen as a healthy global economy.

 

[Guilty_AI]

Stocks hitting all-time highs? Yeah...i saw it.

yeah, almost like big bubbles ready to burst at any moment

 

[Great Auk]

I guess we won't see a switch 2 launch in the US this year. Nintendo can also sell out it product outside the US. Might be a better launch for the rest of the world.
Problem is, who buys a new console while one man hit the world with a recession. Switch 2 might be a bit to expensive for the time.

ONE THIRD of all global Switch sales were in the US. Nintendo needs the US market to be a sustainable company.

 

[StereoVsn]

Tariffs and even VAT aren't certain fixes, that's the thing.

What came prior was such a fuckup on a global scale that the outcome was only ever going to be recession.

You are looking at it very much through an American lens, I am saying globally, before trumps tariffs it's not like we all had it great.

The whole point of BRICS is that the globalisation and tech giant economy was just fucking over everyone.

Someone had to do something, and that's why i hope to god trump has a plan and things work out, only time will tell. But paying R2000 for Mario Kart World when less then 10 years ago Nintendo games were R800 shouldn't be seen as a healthy global economy.

A lot of issues also lie in Brazil's (I presume based on currency) economic and tariff policy.

Trump admin doesn't seem to have a solid plan as comments from the White House staff and cabinet are all over the place and it certainly won't help drive down prices in ROTW whatever it is.

Anyways, this is way too depressing for a gaming forum.

 

[Agent_4Seven]

Congress could absolutely limit his tariff abilities. They just won't because both the House and Senate are GOP lead and the GOP reps and senators are either MAGA followers, who agree with the tariffs, or are too afraid to object and then pissing off MAGA primary voters and being primaried out of a job.

This is exactly it. But after seeing this, this and large potesets in the US, I think there's still hope. Fix it while it's fixable, people, don't just stay and be passive about it cuz your future depends on what you'll be doing next.

But that's enough from me, I don't want to get banned cuz of the politics on the gaming forum.

 

[Parazels]

Do you think the global economy prior was in amazing shape?

Why not heal the global economy gradually?
Without the quake.

 

[Guilty_AI]

Why not heal the global economy gradually?
Without the quake.

How?

 

[Parazels]

How?

Ok. Do the best Nobel laureates in economics support these tariffs?

 

[Allandor]

ONE THIRD of all global Switch sales were in the US. Nintendo needs the US market to be a sustainable company.

Well, not for the launch. At launch date demand even outside the US should be high enough.

 

[Guilty_AI]

Ok. Do the best Nobel laureates in economics support these tariffs?

You didn't answer the question

 

[Doom85]

Trump admin doesn't seem to have a solid plan as comments from the White House staff and cabinet are all over the place and it certainly won't help drive down prices in ROTW whatever it is.

Don't worry, their plan will be known to us when said administration accidentally leaks it to some random reporter by mistakenly adding him to a group chat.

 

[Unknown?]

US initially after Trump's election was projected to have 2-3% growth, avoid recession, maintain low level of unemployment and mostly lower inflation (if slower than originally projected). Hence the market highs.

All of the above have been shot with a cannon.

That's all based on fake numbers. GDP includes government spending so when you create a deficit at pandemic levels for 2024 that spending will make GDP look good while the real economy dies. Same with unemployment. Government hired record amounts of people so unemployment showed less than what it would really be, while the private sector also suffered in this area. After revisions on 2024, there were 800k less jobs created than initially reported.

We have been in a recession for awhile even if the "numbers" said otherwise. I don't care how well wall street is doing.

 

[Parazels]

You didn't answer the question

Gemini AI:

Healing the global economy is an incredibly complex challenge with no single solution, as different regions face unique issues and the global landscape is constantly shifting due to factors like geopolitics, technology, and environmental changes. However, economists and international organizations generally point towards a combination of strategies:
* Taming Inflation: For many countries, bringing high inflation under control remains a priority. This typically involves:
* Monetary Policy: Central banks using tools like raising interest rates to reduce demand and cool down price increases. Careful calibration is needed to avoid triggering deep recessions.
* Fiscal Prudence: Governments managing spending and deficits responsibly to avoid adding further inflationary pressure.
* Promoting Sustainable Growth: Moving beyond short-term fixes to foster long-term, resilient growth:
* Investment in Infrastructure: Both physical (transport, energy, digital) and human (education, healthcare) infrastructure to boost productivity.
* Green Transition: Investing in renewable energy, energy efficiency, and sustainable practices. This addresses climate change (a major long-term economic risk) and creates new industries and jobs.
* Innovation: Supporting research and development to drive technological advancements and productivity gains.
* Strengthening International Cooperation and Trade: Global challenges require global solutions.
* Reducing Trade Barriers: Facilitating smoother international trade and resisting protectionist measures can lower costs and improve efficiency.
* Reforming International Institutions: Ensuring bodies like the WTO, IMF, and World Bank are equipped to handle modern challenges.
* Diplomacy and Stability: Reducing geopolitical tensions and conflicts is crucial, as instability disrupts trade, investment, and energy supplies.
* Addressing Supply Chain Vulnerabilities: The pandemic and geopolitical events highlighted weaknesses. Strategies include:
* Diversification: Reducing reliance on single countries or suppliers for critical goods.
* Investment in Logistics: Improving ports, shipping, and logistics technology.
* Regionalization/Nearshoring: Shortening supply chains where feasible.
* Managing Debt: High levels of public and private debt in some countries pose risks.
* Sustainable Fiscal Policies: Ensuring government finances are on a stable long-term path.
* Debt Restructuring: Coordinated efforts (like the G20 Common Framework) to help heavily indebted low-income countries find sustainable solutions.
* Transparent Lending Practices: Promoting responsible borrowing and lending.
* Tackling Inequality: High levels of inequality can dampen growth and cause social instability.
* Progressive Taxation: Fairer tax systems where higher earners contribute proportionally more.
* Social Safety Nets: Robust unemployment benefits, pensions, and support for vulnerable populations.
* Investing in Opportunity: Ensuring access to quality education and healthcare for all.
* Ensuring Financial Stability: Preventing future financial crises through:
* Strong Regulation and Supervision: Overseeing banks and financial institutions effectively.
* Monitoring Emerging Risks: Keeping an eye on potential bubbles or vulnerabilities in the financial system.
Key Challenges and Considerations:
* Coordination: Getting countries to work together is often difficult due to differing national interests.
* Trade-offs: Policies often involve trade-offs (e.g., fighting inflation might slow growth in the short term).
* Uncertainty: Geopolitical events, technological disruption, and climate impacts create ongoing uncertainty.
* Political Will: Implementing necessary reforms often requires significant political capital and public support.
In essence, healing the global economy requires a coordinated mix of prudent macroeconomic management, strategic long-term investment, strengthened international cooperation, and policies aimed at making growth
more sustainable and inclusive.

 

[Draugoth]

Nintendo should have released the console 2 years ago

 

[Parazels]

Nintendo should have released the console 2 years ago

Greedy Nintendo outsmarted itself!