For several months, Nintendo, the creator of iconic video game franchises such as Super Mario Bros. and Donkey Kong, anticipated that April 2 would be a day of celebration.
With much excitement, the company unveiled the pricing and release date for the Switch 2, its new gaming console that has been in development for eight years. During an event in New York City, Doug Bowser, the president of Nintendo of America, captured the audience’s spirit as fans cheered for the introduction of new games to accompany the console, including Mario Kart, Donkey Kong, and Kirby.
However, later that same day, President Trump announced tariffs that caused global stock markets to tremble, putting the Mario festivities at risk. The new Switch was manufactured in Vietnam, which appears on the tariff list.
Two days later, Nintendo announced a delay in pre-orders for the Switch 2 and hinted at a potential price increase from the initial $450. The extent of the hike remained uncertain. However, on Wednesday, Mr. Trump revealed a 90-day delay on expanded tariffs affecting Vietnam and other countries. Nintendo has not yet clarified how this delay will impact the Switch 2’s pricing.
Nintendo’s situation reflects the broader turmoil caused by Mr. Trump’s fluctuating tariffs, highlighting uncertainty for technology manufacturers and the consumer tech landscape in the weeks to come.
Before Mr. Trump’s announcement on the delay of tariffs for countries aside from China, Nintendo stated its intention to release the Switch 2 in June, although it did not specify a pre-order reopening date or a revised price.
In large numbers, gamers took to social media platforms like X and Reddit to express their frustrations. While it’s common for gamers to attribute the high prices of consoles and games to corporate greed, this time they shifted their blame towards Mr. Trump.
Jake Steinberg, a gamer and writer from Philadelphia, traveled to New York last week to experience a demo of the Switch 2. Now, he is uncertain about the additional costs he may be willing to incur.
“There’s an extreme amount of irony, because people always said this refrain, ‘Keep politics out of games,’” Mr. Steinberg remarked. “Well, here they are.”
For many years, Nintendo produced its gaming consoles in China. However, it shifted most of its manufacturing to Vietnam in 2019, during Mr. Trump’s first term, to avoid tariffs and the looming threat of a trade war between the U.S. and China.
These strategic moves appeared futile as last week, Mr. Trump’s proposals threatened steep new tariffs on products from Vietnam (46 percent), Japan (24 percent), Malaysia (24 percent), and Cambodia (49 percent), leaving manufacturers in the region with limited options.
But with the delay announced on Wednesday, Nintendo might be among the fortunate ones. A majority of consumer electronics, including smartphones and other gaming consoles, are still produced in China and are expected to face tariffs as high as 145 percent—significantly larger than what was discussed just days prior. Meanwhile, products made in Vietnam are only subject to a 10 percent tariff.
The delay provides Nintendo with a 90-day window to ramp up production and bolster its inventory in the United States, according to Michael Pachter, an analyst at Wedbush Securities. However, for other tech firms like Apple, which typically commence production of new iPhones months ahead of their release, this may not be an option.
Nintendo must navigate the careful balancing act of determining how much it can increase the price without driving away gamers—many of whom already believe that $450 is a hefty sum—or holding out hope that they won’t ultimately face the burden of expanded tariffs.
For gaming firms like Nintendo, Sony, and Microsoft, selling consoles is just one piece of their broader business strategy: If consumers opt not to purchase a new console, they also miss out on buying software for the games, which generally yield higher profit margins compared to hardware.
While the expenses for consumer tech products might increase across the board, Mr. Pachter noted that price hikes on highly anticipated products—such as the Switch 2, the first console from Nintendo since 2017—are more likely to incite consumer backlash. He estimated that the Switch 2’s price might soar by as much as $100 if the Trump administration follows through with the tariffs.
“People aren’t going to pay attention if the price of TVs rises, as no one is counting down to June 5th to purchase their TV,” Mr. Pachter explained. “They’ll see that gradually. However, it’s a different scenario for a product launch like this.”
In conversations with the media prior to Mr. Trump’s tariff announcements, Mr. Bowser of Nintendo indicated that the anticipated cost of forthcoming tariffs had not been factored into the console’s $450 price tag. Yet, analysts largely challenge that assertion, noting the Switch 2’s price of $340 in Japan. (A Nintendo spokesperson clarified that the Japanese version is limited to the Japanese language, which partially accounts for the lower pricing.)
Nintendo is likely to wait for the uncertainty surrounding Mr. Trump’s tariffs to settle before announcing a revised price, according to Doug Creutz, an analyst at Cowen, an investment firm. Furthermore, he noted that there remains a chance Mr. Trump may decide to withdraw the tariffs altogether.
“They’d prefer not to have to change their price a second time,” Mr. Creutz stated. Among the considerations facing the company are: “Are we prepared to accept lower profits in the U.S.? Do we want to maintain our profit margins?”
Nintendo has not postponed pre-orders for the Switch 2 in other global markets, where prices vary: $442 in the UK, $435 in Australia, and $450 in Canada. Nintendo still conducts around 30 percent of its manufacturing in China, catering to non-U.S. clients, according to David Gibson, an analyst at MST Financial.
What may mitigate some costs in the short term is that by the end of February, Nintendo had already shipped 746,000 units of the Switch 2 to the United States, which would be exempt from tariffs if they are reinstated, Mr. Gibson pointed out.
“That provides them protection for one quarter,” he added. “But after that period, the price will be subject to full tariffs.”
Nintendo isn’t alone in considering the implications of raising prices on its products. Apple similarly relocated some manufacturing to Vietnam from China in 2019. Other console makers, including Sony and Microsoft, will confront similar challenges as they prepare for their next console releases, expected around 2027.
“All the major consumer electronics companies will feel the impact: Samsung, LG, Apple, prominent TV manufacturers, and game consoles,” Mr. Gibson remarked. “It encompasses everything.”
