While Monday morning started in Japan, the stock markets took a considerable hit as a result of global financial uncertainty and the implementation of the worldwide rates of US President Donald Trump on Saturday. The result has hit the entire Japanese stock market, including the video game sector. Companies such as Capcom, Nintendo, Sony, Bandai Namco and more have all seen a sharp fall in the stock value.
At the time of writing, the Japanese stock market has just stopped at 3.30 pm, which means the current drops should have to Be where things will now settle.
Management of Cookie -Settings
Japanese Games Industry Consultant Dr. Serkan Toto A few companies emphasize and how sharp shares have fallen within a few day after the action, so we have been inside and checked the final figures for the day, and they sketched below:
- Nintendo | – 7.85%
- Sony | – 10.4%
- Capcom | – 6.61%
- Bandai Namco | – 7.37%
- Square Enix | – 5.62%
- Sega | – 7.29%
- Koei Tecmo | – 5.41%
With the US who enforces the rates imposed on Saturday worldwide, these sharp drops are a reaction to the financial turbulence that has come as a result. The US implemented a rate of 24% on all goods, apart from Auto -Import (which was not easy, touched with a levying of 25%). Most shares in Japan today suffered serious damage with the Nikkei 225 – the stock market index of Japan, a bit like the S&P 500 of the US – 7.83%fell.
So why is the Japanese video game industry so difficult? Well, although your first thoughts can go to places such as Gamestop and physical specimens of games that are the perpetrator, it is only part of the problem. Yes, it will be more expensive for people in America to buy a copy of an upcoming release such as Mario Kart World in their local store, which in turn will probably result in fewer people who buy it and therefore less income. But this would be somewhat filled in by the growing majority of players who buy games digitally.
However, these rates also influence the hardware These games are played. Nintendo announced a delay for the American pre-orders for the Nintendo Switch 2, because the American import of the console is hit with rates. In fact, while Nintendo splits his production to China and Vietnam, both countries are currently landing at larger American rates than even Japan. But the same applies to PS5s, Xbox series X | SS, mobile phones, PCs … everything!
Everything you could play on a video game is made considerably more expensive for American consumers from last Saturday. The tragedy is, even if the Japanese government would close a deal with the US to remove these rates, companies like Nintendo and Capcom would still be hit hard, unless rates are removed from other countries where gaming hardware and its components are manufactured.
The US that remains one of the most powerful consumer base in the world for the VideogaMarkt. The American consumer last year spent $ 46.1 billion on video gamesOnly losing China in terms of money spent on gaming. That is in total turnover and not strictly sales from game sales, so microtransactions are included in that figure. Nevertheless, it is a figure that will probably see a great decline this year. Especially when a recession comes the US, something that looks more and more likely every day.
It is a dark omen for the health of the video game industry in general. Whether these shares will recover on time is still to be seen, but as long as these widespread rates persist, it is difficult to feel overly optimistic.