Shares of Super Mario maker Nintendo plunged the most in seven months as investors abandoned Japan¡¯s outperforming video game stocks on worries that U.S. President Donald Trump¡¯s tariffs will drive up console prices in the United States.

Nintendo sank 9.2% in Tokyo, its biggest intraday drop since the stock market rout on Aug. 5. The shares had traded at an all-time high last month and jumped 23% this year before Friday¡¯s plunge.

Under Trump¡¯s new levies, game consoles, including the upcoming Switch 2, ¡°could have higher selling prices in the U.S. ¡ª the world¡¯s biggest market for game consoles ¡ª due to heftier import costs, as most are either manufactured in China or rely on suppliers in the country for parts,¡± wrote Nathan Naidu, an analyst at Bloomberg Intelligence, in a note. Trump raised duties on Chinese imports to 20% from 10% on March 4.

Investors are likely selling off shares of Japanese console makers Friday after reports about tariff risks by gaming-related media yesterday stoked concern about the sector¡¯s outlook, Naidu added. PlayStation creator Sony lost 4.2%, also its biggest drop since August.

A retreat from Japanese shares by global funds amid jittery markets is also likely fueling gaming stocks¡¯ decline, investors say. About half of Nintendo shares are held by foreign buyers, according to the company.

¡°Global investors are reducing their positions in Japanese stocks, and they now can¡¯t even help selling the most attractive stocks they have so far held on to,¡± said Ikuo Mitsui, fund manager at Aizawa Securities.

Gaming stocks have been among the brightest spots in Japan¡¯s otherwise moribund equity market so far this year. The Solactive Japan Games & Animation Index, which includes companies including Nintendo, Sony and Bandai Namco, had risen 14% this year through Thursday, compared with a 1.2% fall in the Topix index.

¡°We think tactical investors are unwinding positions as the sector had become crowded and expensive versus historical levels,¡± said Robin Zhu, an analyst at Sanford C. Bernstein.

Before Trump doubled levies on China this week, software-making firms like games developers had been seen as relative tariff safe havens within the tech sector, driving stock gains. Bandai Namco has been the best performer among Japan¡¯s biggest 100 stocks so far in 2025, but fell 3.2% Friday. Capcom and Konami Group also dropped over 4%.

¡°Even gaming stocks that have performed well so far this year are now coming under pressure,¡± said Yasuo Sakuma, president at Libra Investments. ¡°I suspect some investors are being forced to sell those stocks to make up for losses elsewhere.¡±