Bad news for American gamers: How Trump’s tariffs could impact the Nintendo Switch 2

The introduction of new tariffs by US President Donald Trump is creating turbulence in the gaming industry, with the Nintendo Switch 2 at the center of the storm. Scheduled to launch on June 5, the console has already seen its US pre-orders delayed from April 9 due to the tariff uncertainty. According to GamesIndustry, these tariffs could lead to significant challenges for both manufacturers and consumers.

Nintendo has already delayed US pre-orders for the Switch 2, originally scheduled for April 9, citing the tariffs as a key factor. While the console’s launch date of June 5 remains unchanged, the $450 price tag has sparked speculation about whether it was influenced by the looming tariffs. Mat Piscatella of Circana suggests that while it’s unclear how much tariffs factored into the pricing, “I’d have to believe that it was at least a consideration”, though specifics remain uncertain.

The steep 46% reciprocal tariff on Vietnam, a key manufacturing hub for Nintendo, adds another layer of complexity. Dr. Serkan Toto of Kantan Games notes that Nintendo likely ran simulations to minimize the impact of tariffs on pricing. However, he emphasizes that raising the price now would be a risky move, especially with the console’s launch just two months away.

Despite these challenges, analysts like Niko Partners believe a price increase for the Switch 2 is unlikely at this stage. However, they caution that a price drop is also improbable within the next five years. Piers Harding-Rolls of Ampere Analysis adds that if tariffs persist, a price increase could be on the table by 2026.

The broader implications for the gaming industry are equally concerning.Aubrey Quinn of the Entertainment Software Association warned, “Tariffs are going to have a real and detrimental impact on the video game industry,” as components sourced globally may become costlier, compounding expenses for consumers.

While the Switch 2 is expected to sell out in 2025 due to limited launch quantities and strong demand from enthusiasts, Piscatella highlights potential challenges in the second year. As supply increases and the market shifts to mass-market buyers, price sensitivity could become a significant factor.

The timing of the Switch 2’s reveal, coinciding with the announcement of the tariffs, has drawn criticism. Dr. Toto questions why Nintendo did not postpone their announcement to avoid being overshadowed by the tariff news, calling the decision “flabbergasting.”

As the gaming industry navigates these uncharted waters, the stakes have never been higher. With the Switch 2 poised to follow in the footsteps of its predecessor, the third best-selling console of all time, the coming months will be critical in determining its success amidst these challenges.

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