Console gaming is serious business — and resilient, too. The industry has weathered economic downturns with remarkable consistency. Yet the latest escalation in US tariffs under Donald Trump’s administration presents a rare challenge, raising concerns over cost pressures and supply chain disruptions.
Shares of Nintendo are down a tenth in the past week, a notable pullback after hitting an all-time high last month and gaining more than 40 per cent over the six months before the sell-off. Shares of Sony Group, the creator of PlayStation, fell 6 per cent on concerns that Trump’s tariffs will drive up console prices in the US.
But the issue extends beyond US gamers and Japanese console makers — it’s about China. A steep rise in US tariffs on Chinese goods to 20 per cent, from 10 per cent, is a direct threat to the console market. A significant share of gaming consoles are assembled in the People’s Republic, or rely on its suppliers for key components, leaving the industry to face rising costs and potential supply chain disruptions.