ESA on Trump Tariffs: 'Not Just About Switch 2'

The past 48 hours have been a whirlwind for both economic enthusiasts and Nintendo fans alike. On Wednesday, news broke that the Nintendo Switch 2 would retail at $450 in the United States. Analysts pointed out that this steep price was influenced by anticipated tariffs, alongside factors such as inflation, competition, and the cost of components.

The situation escalated when, last night, the Trump Administration unveiled sweeping 10% tariffs on nearly every country, with significantly higher tariffs imposed on nations like China, the EU, Japan, Vietnam, Canada, Mexico, and others. In a swift response, China announced a 34% reciprocal tariff on all U.S. goods this morning. Amidst this turmoil, Nintendo made the decision to postpone pre-orders for the Nintendo Switch 2 in the U.S., as they assess the impact of these tariffs on their console strategy.

This unprecedented scenario has left analysts, experts, and the public grappling to understand its implications. Just 30 minutes before Nintendo's announcement, I had the opportunity to speak with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to discuss the broader impact of these tariffs on the gaming industry.

The ESA, like many others, is still navigating the potential outcomes of these developments. Quinn noted that while tariffs were anticipated due to previous actions and campaign promises by Trump, the exact nature and extent of these measures were uncertain. The ESA expects retaliatory actions from countries like China and further U.S. tariffs, but the full impact remains unclear.

However, the ESA is certain that these tariffs will negatively affect the video game industry. Quinn stated, "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. And so our goal is to work with the administration, to work with other elected officials to try to find a solution that doesn't damage U.S. industries, U.S. business, but also American gamers and families."

Quinn elaborated that the impact would extend beyond just the pricing of gaming systems. She highlighted that consumer spending would be affected, which in turn would influence company revenues, job security, investment in research and development, and even the design of future consoles. "The entire consumer ecosystem is connected," she emphasized.

In response, the ESA is taking action, though Quinn admitted it's been challenging to start due to the newness of the Trump Administration. The ESA has already joined a coalition of trade associations to voice concerns to U.S. trade representative Jamieson Greer and is seeking meetings with legislators and administration members to discuss these issues.

When asked if these efforts were making an impact, Quinn confirmed that conversations are happening at various levels of government, including with members of the administration and the office of the United States Trade Representative. She stressed 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 said.

Nintendo's decision to hold off on Nintendo Switch 2 pre-orders came just minutes after our conversation ended. While the ESA does not comment on individual company actions, Quinn reflected on the broader implications of the tariffs, noting the unfortunate timing of the Switch 2 reveal with Trump's announcement. She emphasized that the impact would be felt across all gaming devices, from consoles to VR headsets and smartphones, and would affect American-based companies reliant on international supply chains. "This is going to have an impact on the entire industry," she concluded.