ESA Responds to Trump Tariffs: ‘If We Think It’s Just the Switch 2, Then We Aren’t Taking it Seriously’

The past 48 hours have been a whirlwind for economics enthusiasts and Nintendo fans alike. On Wednesday, the gaming world was hit with the news that the Nintendo Switch 2 would be priced at a steep $450 in the United States. Analysts attribute this high cost to a mix of anticipated tariffs, inflation, competitive pressures, and the rising costs of components.

The situation escalated further 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 economic 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 delve into the potential effects of these tariffs on the gaming industry.

The ESA, like many others, is still navigating the complexities of this situation. 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 potential retaliatory actions from countries like China and further U.S. tariffs, but the full impact remains unclear.

However, the ESA is clear on one point: 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."

The detrimental impact Quinn refers to extends beyond just the price of gaming systems. She emphasized that it's "hard to imagine a world where tariffs like these don’t impact pricing." Consumer spending will also be affected, which in turn will influence company revenues. Reduced profits could lead to job cuts, decreased investment in research and development, and even affect the design of future consoles. "The entire consumer ecosystem is connected," she explained.

In response, the ESA is taking action, though Quinn admits it's challenging to get started due to the newness of the Trump Administration. The ESA has already joined a coalition of trade associations to voice their concerns to U.S. Trade Representative Jamieson Greer before the tariffs were announced. They are also seeking meetings with legislators and administration members to discuss these issues.

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

For concerned consumers, Quinn suggests 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 decisions, Quinn highlighted the broader impact of tariffs on the gaming industry. She noted the unfortunate timing of the Switch 2 reveal coinciding with Trump's tariff announcement, emphasizing that the impact will be felt across all gaming devices, from consoles to VR headsets and smartphones. "And even American-based companies, they're getting products that need to cross into American borders to make those consoles, to make those games. And so there's going to be a real impact regardless of company. This is company-agnostic, this is an entire industry. There's going to be an impact on the entire industry," she concluded.