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

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans alike. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at $450 in the United States. Analysts attribute this steep price to a combination of factors, including anticipated tariffs, inflation, competition, and rising component costs.

The situation escalated last night when the Trump Administration announced sweeping 10% tariffs on nearly every country, with significantly higher tariffs targeting nations such as China, the EU, Japan, Vietnam, Canada, Mexico, and others. In a swift response, China declared a 34% reciprocal tariff on all U.S. goods this morning. Amidst this chaos, Nintendo made the decision to postpone pre-orders for the Nintendo Switch 2 in the U.S., pending a thorough assessment of how these tariffs might affect their console plans.

This unfolding scenario is unprecedented and has left analysts, experts, and the public grappling to understand its implications. Just minutes before Nintendo's announcement, I spoke 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 tariffs. Quinn noted that while the industry anticipated some form of tariffs due to previous actions and campaign promises by Trump, the exact nature and extent of these measures were uncertain. She highlighted the risk of retaliatory actions from countries like China and the possibility of further U.S. tariffs. However, the full impact remains to be seen.

Quinn was clear about one thing: these tariffs will negatively affect 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," she stated. The ESA aims to collaborate with the administration and elected officials to find solutions that protect U.S. industries, businesses, and gamers.

The detrimental impact extends beyond just the cost of gaming systems. Quinn explained, "It's hard to imagine a world where tariffs like these don't impact pricing." She also pointed out that consumer spending would be affected, which in turn would impact company revenues, jobs, 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 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 are making a difference, 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 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.

Nintendo's decision to hold off on Nintendo Switch 2 pre-orders came just after our conversation. While the ESA does not comment on individual company actions, Quinn highlighted the broader impact of tariffs on the gaming industry. "There are so many devices we play video games on... This is going to have an impact," she said, emphasizing that the issue affects the entire industry, regardless of the company.