Nintendo Switch Game Console Release Is Whipsawed by Tariff Threats

For several months, Nintendo, a famous video game maker like Super Mario Bros. expected. And Donkey Kong, on the morning of April 2 to celebrate.
To a lot of noise, the company announced the price and the date of release to Switch 2Eight -year Video Games Control Unit in making it. At an event in New York City, Doug Busir, President of Nintendo from America, took the theater where the fans chanted new games to accompany the control unit; Mario Cart, Donki Kong and Kirby among them.
After that, later in the same day, President Trump announced the definitions that were sent Global stock markets are reeling The Mario Party was in danger. The new key was made in Vietnam, one of the countries in the tariff list.
Two days later, Nintendo said it was Delaying the pre -orders of the key 2 Perhaps raising the price from $ 450. How clear height was. But on Wednesday, Mr. Trump said he was late for the expanded customs tariffs on Vietnam and many other countries for 90 days. Nintendo has not yet specified how the delay will affect the Switch 2 price.
The Whipsaw experience of Nintendo shows the broader chaos caused by advanced definitions of Mr. Trump at technology manufacturers, and uncertainty in what the market for consumer technology will appear to be in the coming months.
In a statement before Mr. Trump postponed the expanded definitions of countries other than China, Nintendo said it was still planning to launch the switching key 2 in June, but it has not set an appointment for the date of reopening requests or announcing a new price.
Players have already moved to social media such as X and Reddit by thousands of complaint. While it is a common practice in the industry for players to blame the high cost of key devices and games on the greed of companies, they instead turned to blame Mr. Trump.
Jake Steinberg, a player and writer from Philadelphia, visited New York last week to play an experimental offer for 2. He is now not sure the additional cost that he will be ready to take over.
“There is a great deal of paradox, because people have always said this refusal,” keeping politics outside the games. “Well, here they are.
For years, Nintendo has manufactured gaming units in China. But it transferred most of its production to Vietnam in 2019, during the first term of Mr. Trump, to avoid customs tariffs and threaten the trade war between China and the United States.
It seems that these maneuvers were not for nothing because Mr. Trump’s plans announced last week threatened the huge new definitions of goods from Vietnam (46 percent), Japan (24 percent), Malaysia (24 percent) and Cambodia (49 percent), leaving manufacturers in the region with few options.
But due to the delay announced on Wednesday, Nintendo may be one of the lucky ones. The majority of consumer electronics, including smartphones and other games devices, are still made in China. They are expected to undergo 145 percent of customs tariffs – only a few days. The products made in Vietnam, like most countries, are still 10 percent tariff.
Michael Pashter, an analyst at Wedbush Securities, said the delay gives Nintendo 90 days to increase production and storage in stock in the United States. But for other technology companies such as Apple, which usually does not begin to produce new iPhone devices even months before the release date, this may not be an option.
Nintendo can still end playing the sensitive game of determining the amount that the price can raise without removing players – many of whom have already felt $ 450 of $ 450 – or they reserve the hope that he will not eventually be exposed to expanded tariffs.
For gaming companies such as Nintendo, Sony and Microsoft, selling keyboards is only one side of their business: if customers choose not to buy a new control unit, they will also not be able to buy the program for the same games, which sells on higher margins than devices.
Mr. Pachter added that the cost of technical products for consumers may rise in all fields, because the price increases on the loud elements that people have been waiting for for years – such as Switch 2, are likely to be the first control unit issued by Nintendo since 2017 – create consumer anger. It was estimated that the new cost of switching 2 can increase by $ 100 if the Trump administration continues to definitions.
“People will not notice whether the price of the TVs are rising, because no one is waiting for June 5 to buy their TV,” said Mr. Patchater. “They will gradually notice this. But it is different from the launch of the product like this.”
In interviews with the media before announcing the tariff of Mr. Trump, Mr. Buser from Nintendo said that the expected cost of future definitions was not put in the price of the $ 450 console. But analysts greatly ignore this claim, pointing to the price of the alternative 2 that was sold in Japan of $ 340 in Japan. (A Nintendo spokesman said the Japanese model is limited to the Japanese language, and this is partly the reason for a lower cost.)
Doug Curitz, a Queen analyst, an investment company, said that Nintendo will likely wait for the dust to settle on the identification chaos of Mr. Trump before announcing a new price. He added that there is still a possibility that Mr. Trump will completely back down from the definitions.
“They do not want to change their price for the second time,” said Mr. Criozz. Among the decisions that the company weighs: “Are we ready to make less profit in the United States? Do we want to protect our profit margin?”
Nintendo has not postponed the pre -switching requests 2 in the world, as the cost varies depending on the region; $ 442 in Britain, $ 435 in Australia, $ 450 in Canada. “Nintendo is still about 30 percent of its manufacturing in China, which it uses to provide buyers other than the United States.
Mr. Gibson said that what would help compensate for some cost, in the short term, is that by the end of February, Nintendo had already shipped 746,000 units of switching 2 to the United States, which is immune to customs tariffs if it was re -restored.
“This will protect them for one quarter,” he added. “But then, the price will be a complete tariff.”
Nintendo is not the only technological company that weighs price raising different products. Likewise, Apple has transferred some of its manufacture to Vietnam from China in 2019. Other controller makers like Sony and Microsoft will face a similar dilemma when they manufacture the following keyboards, which are expected to be released at some time around 2027.
“All large consumer electronics companies will strike: Samsung, LG, Apple, The Big Tv Manuflests, keyboards for games,” said Mr. Gibson. “It is everything.”