The Entertainment Software Association (ESA) has responded to trade tariffs imposed by US President Donald Trump, saying the measures «will have a real and detrimental impact» on game developers.
The Entertainment Software Association (ESA) has responded to trade tariffs imposed by US President Donald Trump, saying the measures «will have a real and detrimental impact» on game developers.
Trump’s tariff war affects about 60 countries around the world, including Ukraine, and even uninhabited islands with penguins. Some of the highest tariffs are aimed at countries that are important centers of production of gadgets for video games. This is reported by Eurogamer.
For example, Vietnam, where most Nintendo devices are manufactured, received a 46% tariff, while China received 54%.
ESA Senior Vice President Aubrey Quinn said the increased costs associated with these tariffs «will have a real and detrimental impact on the video game industry.»
«Any product that a consumer buys will likely be subject to multiple announced tariffs that will stack on top of each other,» Quinn noted.
She said the situation could worsen when countries affected by the tariffs begin to take retaliatory measures.
«I think what we heard yesterday is not the end of the story for the US or other countries,» the ESA vice president believes.
Analyst Daniel Ahmad noted that Nintendo moved production to Vietnam to avoid tariffs, but after Trump announced reciprocal tariffs, it became clear that it would be able to achieve this. He also suggested that the higher price of the Switch 2 console in the US compared to Japan «is probably a deliberate move on Nintendo’s part» due to the impact of tariffs, the «weak» yen, and local market conditions.
The Switch 2 is priced at $450 in the US, but could rise to $600 if the console is impacted by the Trump administration’s tariffs. According to the analyst, «Nintendo is unlikely to raise the price of the console immediately, but it is also unlikely that the price will fall in the next five years.»
«I think every company, every industry… has to think about what’s best for consumers, what’s best for businesses and what’s best for workers. Supply chains are complex, and of course they don’t change overnight. Anything that’s being considered or decided can’t be a quick turnaround and can’t be a hasty response to any particular announcement,» Quinn said of the potential shift of production from China to the United States.
Apple has also tried to move some of its production to countries like India, Vietnam, and Thailand to avoid tariffs. When it became known which countries would be subject to tariffs, the company’s shares fell by 7%. In addition to Apple, shares of Meta and Nvidia (about 5%) and Amazon (about 6%) also fell.
Trump says he’s willing to lower his tariffs if other countries (and penguins) can offer something «phenomenal.» China could get such a relief if it approves a deal to sell a stake in TikTok to the US.
