Written by Dante Uzel on 04 April 2025 09:49
As US President Donald Trump’s new tariffs take effect in April 2025, analysts and industry figures are assessing the potential impact on the upcoming launch of the Nintendo Switch 2. With tariffs ranging from 10% to as high as 54% on imports from certain countries, the video game industry is bracing for how these changes may influence pricing and manufacturing strategies.
The tariffs were formally unveiled on April 2, 2025, setting the stage for a critical week in the gaming world. Shortly before the announcement, Nintendo revealed the $450 price tag for the Switch 2, sparking speculation as to whether the tariffs played a role in determining the console’s cost.
"It's difficult to say for certain," said Mat Piscatella of Circana, when asked if Nintendo had factored tariffs into the Switch 2’s price. "However, at least the potential for tariffs was widely known before the announcement of pricing around Switch 2 products. How much potential tariffs played as part of the determination of that pricing? I don't know. I'd have to believe that it was at least a consideration."
Nintendo has already taken steps to mitigate tariff impacts by moving some of its hardware manufacturing to Vietnam, which, alongside Japan, is facing steep "reciprocal" tariffs. Vietnam’s tariffs are particularly high, with an effective 46% tariff on imports to the US. "The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect," said Niko Partners.
Despite these concerns, Niko Partners does not anticipate a price increase for the Switch 2 in light of the recent tariff announcements. "That being said, we think it’s unlikely that Nintendo will raise the price of the console at this point, but it’s also unlikely to see a price drop in the next 5 years," they added.
Dr. Serkan Toto of Kantan Games echoed this sentiment, suggesting that a price hike is unlikely, especially given the timing of the announcement. "I believe it is now too late for Nintendo to drive up the price further, if that ever was an option in the first place," Toto told GamesIndustry.biz. "As far as tariffs go, Nintendo was looking at a black box all the way until April 2 – just like everybody else. As a hardware manufacturer, Nintendo most likely ran simulations to get to a price that would make them tariff-proof as much as possible."
However, some analysts believe that any price increases resulting from the tariffs may come further down the line. Piers Harding-Rolls from Ampere Analysis noted that while a price rise is unlikely for the Switch 2’s initial release, it could become a possibility in the future. "If the tariffs persist, I think a price increase in 2026 might be on the table," Harding-Rolls said.
The newly imposed tariffs are part of a broader trade policy introduced by President Trump on April 2, 2025. The policy includes a 10% tariff on imports from certain countries, which will go into effect on April 5. Additional, higher "reciprocal" tariffs will be applied from April 9. A more comprehensive list of the affected countries was released later by the White House, but notable exclusions include Canada and Mexico, which have already experienced tariff changes in February, though these were later partially rolled back.
China, one of the largest trading partners with the US, will see an effective tariff rate of 54%, as a new 34% tariff is added to the 20% already in place.
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Tags: Nintendo
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