Nintendo Switch 2 launch survives Trump tariffs, but holiday prices remain uncertain
As reported by The Guardian, the console hit shelves yesterday as scheduled, but the journey to its release was fraught with delays and uncertainties stemming from Trump's tariffs on imports.
Priced at US$450 (RM2,070) at launch, the Switch 2 was initially threatened by tariffs as high as 46 per cent on imports from Vietnam, where most of its production is based.
According to the report this uncertainty forced Nintendo to delay pre-orders initially scheduled for early April, causing widespread frustration among gamers. Pre-orders eventually resumed on April 24, and the console sold out quickly.
'What saved Nintendo in this case was that Trump chickened out,' Robert Johnson, an international economist from the University of Notre Dame, told The Guardian.
He referred to Trump's decision to issue a 90-day pause on tariffs to allow for negotiations with affected countries. This window allowed Nintendo to proceed with the console's June 5 release without additional costs being passed on to consumers.
However, industry experts told The Guardian that the reprieve might be short-lived. If negotiations fail and the tariffs are reinstated, the Switch 2 could face price increases during the holiday season, a critical period for console sales.
'It takes a long time and significant capital outlays to bring new production facilities online. Producers really like to operate in a stable environment. The current trade environment is the exact opposite of that,' Johnson was quoted as saying.
Nintendo's strategic shift to manufacture in Vietnam—a move made during Trump's first term to sidestep earlier tariffs on Chinese imports—has now left it vulnerable to the latest trade policies.
Sony and Microsoft, expected to release their next-generation consoles in 2027, are likely to encounter similar challenges.
Despite this, Nintendo has managed to ship an estimated 746,000 Switch 2 units to the US ahead of potential tariff hikes, ensuring that these units are exempt from additional import duties.
Accessories, however, are not immune. The company has confirmed that certain peripherals will see price adjustments.
According to CNBC, docks used for connecting the Switch to a full-size screen now cost US$10 more, while controller straps have seen a US$1 increase. Johnson also speculated to The Guardian that the company may consider raising the console's price later this year if tariffs resume.
'I find it difficult to imagine that the Trump administration will want thousands of stories written during the holiday season about how Trump ruined Christmas,' Johnson said, noting the political ramifications of such a move.
As The Guardian highlighted, while hardware costs remain a concern, Nintendo's revenue model relies heavily on software and online subscriptions, which are unaffected by tariffs. 'In the end, Nintendo wants to sell consoles to get people to buy games and accessories,' Johnson said.
'As a result, it may be willing to hold down the price of consoles.'
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