ESA warns Trump tariffs will bring "significant harm" to US developers and players

[Astral_lion02]

ESA warns Trump tariffs will bring "significant harm" to US developers and players

The Entertainment Software Association (ESA) has warned that any tariffs levied by Donald Trump's administration will c…

www.gamesindustry.biz

The Entertainment Software Association (ESA) has warned that any tariffs levied by Donald Trump's administration will cause "significant harm" to the video game industry - and players - in the US.

In a statement to Kotaku, the organisation - which represents video game companies like Microsoft, Sony, and Nintendo - initially asked for the Trump administration to "consult" with the industry in a "transparent process to avoid causing significant harm to everyday Americans".

The tariffs, set to go into effect tomorrow, will impact exports from Canada, China, and Mexico (although the latter's tariffs have been "paused" and remain under review).

Whilst games are digital and likely exempt, the tariffs will, however, impact the availability of hardware and accessories, as well as the components used to make game consoles and PC hardware.

"Tariffs on video game devices and related products would impact Americans of all ages across the country," the statement said.

"We urge the administration to consult with the private sector in a transparent process to avoid causing significant harm to everyday Americans and to one of the fastest-growing entertainment sectors in the United States."

However, as spotted by Forbes, this statement was modified shortly thereafter to read:

"Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industry's significant contributions to the U.S. economy.

"We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector."

 

[Aostia82]

Will Nintendo delay the US launch after these tariffs issues?
Will Nintendo ship to US only the quantities produced in Vietnam?

 

[Shezard]

I don't expect short term decisions from a conservative conpany like Nintendo. But. If Nintendo adjust prices globally based on tariffs, will they sacrifice net profits in USA or will Nintendo squezze RotW pockets to keep the previously expected margins in North America?

 

[awng782]

The tariffs, set to go into effect tomorrow, will impact exports from Canada, China, and Mexico (although the latter's tariffs have been "paused" and remain under review).

FYI the Canadian tariffs have also been "paused".

 

[Mekanos]

Trump is a moron as usual, burning good will over nothing. I have nothing about him to say that wouldn't be ugly.

 

[Terrell]

The Canada and Mexico tariffs have minimal to no impact on the video game industry, it's the tariff on China and the threatened tariff on Taiwan that will have a material impact. And there's likely zero hope that anyone in the US and especially not in the president's orbit is gonna tell him to take a concession from China to pause tariffs as he has with Canada and Mexico.

 

[Bernd Lauert]

The tariffs aren't real, they're being used as bargaining chips. Nothing ever happens

 

[SquidEnthusiast]

The tariffs aren't real, they're being used as bargaining chips. Nothing ever happens

The only ones that have a chance of actually manifesting are the Chinese tariffs I would say.

 

[Mekanos]

The tariffs aren't real, they're being used as bargaining chips. Nothing ever happens

I mean the tariffs on China went through and China is already doing counter-tariffs.

 

[Windom Earle]

Source from recently banned social media platform:

“China tariff impact on Switch 2 launch in the US? Zero. When Trump had his first term… Nintendo with Hosiden decided to try and get to 50% of production from Vietnam. So Vietnam production will supply to the US and China etc will supply to the rest of the world. Smart.”

 

[Lite_Agent]

Will Nintendo delay the US launch after these tariffs issues?
Will Nintendo ship to US only the quantities produced in Vietnam?

Unless they're planning to never launch Switch 2 in the US, the answer is no.

Vietnam production is indeed a possible solution, but it's likely just a matter of time before it also get hit by tariffs : /

Source from recently banned social media platform:

Source is David Gibson (could always use screenshot instead of link).

And I wouldn't be quite as optimistic as him on the matter. Then again, I wouldn't be optimistic about anything these days

 

[awng782]

My biggest concern wrt tariffs is if that 100% tariff on Taiwan/TMCS-manufactured chips will go through. If it does then it would devastate gaming hardware, which would trickle down and devastate software as well. The 10% tariff on China is also bad as is, though (as mentioned above) past efforts to move some manufacturing outside of China will come in handy here.

Someone needs to convince Epic Games to add an official Donald Trump skin to Fortnite, this could unironically convince him to make all video game products exempt from tariffs.

 

[Joseki]

Source from recently banned social media platform:

You can use post the url by replacing X with xcancel.

 

[awng782]

任天堂、今期営業益は2度目の下方修正　スイッチ販売下振れ

任天堂は４日、２０２５年３月期の連結営業利益予想を３６００億円から２８００億円（前年比４７．１％減）に下方修正した。下方修正は今期２度目。年末商戦の結果を踏まえて、家庭用ゲーム機「ニンテンドースイッチ」のハードウエア・ソフトウエアの販売計画を引き下げた。年間配当も従来予想の１２９円を１１６円に引き下げた。

jp.reuters.com

Via Google Translate

Regarding the impact of President Trump's tariff policy on the business, President Furukawa explained, "Switches are produced not only in China, but also in Vietnam and Cambodia. We have established a system in anticipation of various geopolitical risks." He added that if additional tariffs are imposed on China, "a certain impact is expected, but the impact on our performance this fiscal year will be minor. We will keep a close eye on developments and thoroughly consider how to respond."

So basically confirming what we know regarding hardware manufacturing in regions outside of China.

 

[ArkhamFantasy]

Just remember that this president had, and I’m not exaggerating, thousands of random tweets and snippets in interviews about things he was going to do that never actually went into law. That includes some of his biggest campaign promises that he ran on.

It’s good to discuss possibilities but I wouldn’t stress out about any of them until a bill is actually up for a vote at least.

 

[Lite_Agent]

任天堂、今期営業益は2度目の下方修正　スイッチ販売下振れ

任天堂は４日、２０２５年３月期の連結営業利益予想を３６００億円から２８００億円（前年比４７．１％減）に下方修正した。下方修正は今期２度目。年末商戦の結果を踏まえて、家庭用ゲーム機「ニンテンドースイッチ」のハードウエア・ソフトウエアの販売計画を引き下げた。年間配当も従来予想の１２９円を１１６円に引き下げた。

jp.reuters.com

Via Google Translate

So basically confirming what we know regarding hardware manufacturing in regions outside of China.

Huh, had no idea they had manufacturing in Cambodia of all places.

 

[Bernd Lauert]

I mean the tariffs on China went through and China is already doing counter-tariffs.

The US and China always had tariffs and sometimes outright bans on each others goods. Production will shift accordingly (and already has shifted to a large degree).

 

[MarcoP90]

Huh, had no idea they had manufacturing in Cambodia of all places.

It was showed by David Gibson for the first time back in 2021, actually

https://xcancel.com/gibbogame/status/1444073511585140736

Shipments into the USA for Nintendo of America show real problems in April, May (semiconductors). But Hosiden (Vietnam) volumes were still up to 60% of shipments. In July Hosiden was zero and total volumes were -80% YoY as a result.

Incredibly small contribution back then, as you can see, but I wonder if and by how much it's grown since then.