ESA on Trump Tariffs: 'More Than Just Switch 2'

The past 48 hours have been a whirlwind for both economic news followers and Nintendo enthusiasts. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at $450 in the United States. This steep price, analysts say, is influenced by anticipated tariffs, as well as factors such as inflation, competition, and rising component costs.

The situation escalated last night when the Trump Administration announced sweeping 10% tariffs on virtually every country, with significantly higher tariffs targeted at nations like China, the EU, Japan, Vietnam, Canada, Mexico, and many more. In a swift response, China announced this morning a 34% reciprocal tariff on all U.S. goods. Following these developments, Nintendo postponed Nintendo Switch 2 pre-orders in the U.S. to assess the impact of these tariffs on its console strategy.

This unfolding scenario is unprecedented, affecting not only the gaming industry but also global economics. As everyone grapples with understanding the full implications, I had the opportunity to speak with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), just 30 minutes before Nintendo's surprising announcement.

The ESA, like many, is still navigating the potential outcomes of these tariffs. Quinn mentioned that while they anticipated some form of tariffs due to past actions and campaign rhetoric from Trump, the extent and retaliation, such as from China, were still uncertain. However, the ESA is confident that these tariffs will negatively impact the video game industry.

“We really are, at this point, just watching and trying not to have knee-jerk reactions, because we don't think that what President Trump announced this week is the end of the story, but what was announced this week and the tariffs as outlined, we do expect these tariffs will have a real and detrimental impact on the industry and the hundreds of millions of Americans who love to play games,” Quinn stated. The ESA's goal is to collaborate with the administration and elected officials to find solutions that protect U.S. industries, businesses, and gamers.

Quinn emphasized that the impact extends beyond just the cost of gaming systems. “It’s hard to imagine a world where tariffs like these don’t impact pricing,” she noted, adding that consumer spending, company revenues, jobs, research and development, and future console designs would all be affected. “The entire consumer ecosystem is connected,” she explained.

In response, the ESA is actively engaging with policymakers. Despite the challenges of working with a newly formed administration, Quinn said they are identifying key contacts and fostering dialogues to highlight the potential damage to businesses and consumers. The ESA has already joined a coalition of trade associations to voice concerns to U.S. trade representative Jamieson Greer before the tariff news broke and is seeking further discussions with legislators and administration members.

When asked about the effectiveness of these efforts, Quinn confirmed that conversations are underway at various levels of government, including with White House and USTR employees. She emphasized that this issue transcends the video game industry, affecting all consumer products from food to fashion to electronics.

For concerned consumers, Quinn suggested reaching out to their representatives through letters, calls, emails, or social media to express their concerns. “I think the more members of government, elected officials, and their staff who hear that their constituents are concerned, the more likely we are to be heard and to potentially make an impact,” she advised.

Just minutes after our conversation ended, Nintendo announced the hold on Nintendo Switch 2 pre-orders due to the tariffs. While the ESA does not comment on decisions by individual companies, Quinn reflected on the broader implications during our discussion, noting that the timing of the Switch 2 announcement coinciding with Trump's tariff declaration was unfortunate. She highlighted that the impact of these tariffs would be felt across various gaming devices, including consoles, VR headsets, smartphones, and PCs, affecting American-based companies and the entire industry.