The Entertainment Software Association (ESA), which represents all major gaming companies in the US, has responded to US president Donald Trump’s sweeping trade tariffs, saying the measures will “have a real and detrimental impact” on the games industry.
Trump imposed wide-reaching trade tariffs earlier this week, with some of the highest levies targeting countries which also happen to be critical centres of video games hardware manufacturing. Vietnam, for instance – where much of Nintendo’s hardware production now takes place – was hit with 46 percent tariffs, while China’s reach as high as 54 percent.
Speaking with Game File’s Stephen Totilo, ESA senior vice president Aubrey Quinn said the increased costs associated with these tariffs “are going to have a real and detrimental impact on the video game industry”. Quinn also noted the way parts are sourced and devices are shipped means, “Any one product that a consumer would buy is likely to be subject to many of the tariffs announced, all compounded on top of one another.”
The situation could also worsen, Quinn suggested, as countries affected by the tariffs begin to take retaliatory measures. “I think what we heard yesterday is not the end of the story,” she added, “not for the United States, not for other countries.”
Tariffs have already been a major talking point following Switch 2’s reveal, with analyst Daniel Ahmad noting, “Nintendo shifted its manufacturing to Vietnam to avoid tariffs and with today’s reciprocal tariff announcements they’re likely going to end up paying tariffs anyway.” Ahmad also suggested the console’s higher US cost compared to Japan “is likely a calculated move on Nintendo’s part, driven by tariff impacts, the weak Japanese yen, and local market conditions.”
There’ve also been fears Switch 2, which is priced at $450 in the US, could see its cost eventually rise to as much as $600 if impacted by the Trump administration’s tariffs. However, Ahmad argued it’s “unlikely that Nintendo will raise the price of the console at this point, but it’s also unlikely to see a price drop in the next five years.”
Back to Quinn, though. When asked if video game manufacturers should consider producing more goods in the US to lessen the effect of tariffs, she concluded, “I think every company, every industry… needs to think about what’s best for consumers, best for business, and best for employees. Supply chains are complicated and, certainly, supply chains don’t change overnight. Everything that is considered or decided can’t be a quick turnaround and can’t be a knee-jerk reaction to any particular announcement.”