This morning’s announcement that Nintendo is delaying US preorders for the Switch 2 immediately increased the salience of President Trump’s proposed wide-reaching import tariffs for millions of American Nintendo fans. Additionally, the Entertainment Software Association—a lobbying group that represents the game industry’s interests in Washington—is warning that the effects of Trump’s tariffs on the gaming world won’t stop with Nintendo.
“There are so many devices we play video games on,” ESA senior vice president Aubrey Quinn said in an interview with IGN just as Nintendo’s preorder delay news broke. “There are other consoles… VR headsets, our smartphones, people who love PC games; if we think it’s just the Switch, then we aren’t taking it seriously.
“This is company-agnostic, this is an entire industry,” she continued. “There’s going to be an impact on the entire industry.”
While Trump’s tariff proposal includes a 10 percent tax on imports from pretty much every country, it also includes a 46 percent tariff on Vietnam and a 54 percent total tariff on China, the two countries where most console hardware is produced. Quinn told IGN that it’s “hard to imagine a world where tariffs like these don’t impact pricing” for those consoles.
More than that, though, Quinn warns that massive tariffs would tamp down overall consumer spending, which would have knock-on effects for game industry revenues, employment, and research and development investment.
“Video game consoles are sold under tight margins in order to reduce the barrier to entry for consumers,” the ESA notes in its issue page on tariffs. “Tariffs mean that the additional costs would be passed along to consumers, resulting in a ripple effect of harm for the industry and the jobs it generates and supports.
Not just a foreign problem
The negative impacts wouldn’t be limited to foreign companies like Nintendo, Quinn warned, because “even American-based companies, they’re getting products that need to cross into American borders to make those consoles, to make those games. And so there’s going to be a real impact regardless of company.”