The Potential Impact of Trump's Tariffs on the Gaming Industry and the Nintendo Switch 2

Following the implementation of tariffs by US President Donald Trump, Nintendo has postponed pre-orders for the Switch 2 in the US. The console's launch date remains unchanged, set for June 5. Industry experts have shared their insights on the potential effects of these tariffs on the gaming industry, particularly with regards to the Nintendo Switch 2. Trump's tariffs, which include a general 10% rate for certain countries and higher reciprocal percentages for others, have sparked speculation about their influence on the Switch 2's pricing. Mat Piscatella of Circana notes that while the potential for tariffs was known before the Switch 2's pricing announcement, it is uncertain whether Nintendo factored them into the console's price. Dr. Serkan Toto of Kantan Games suggests that Nintendo likely ran simulations to determine a price that would minimize the impact of tariffs. The specifics of the tariffs were difficult to predict, and their effects on the gaming industry are still unfolding. Nintendo has moved some of its hardware manufacturing to Vietnam, which has been hit with a 46% reciprocal tariff. Despite this, Niko Partners does not expect a price increase for the Switch 2 based on the current announcements. Kantan Games' Dr. Serkan Toto agrees, stating that it is unlikely for Nintendo to raise the price further. Ampere Analysis' Piers Harding-Rolls believes that any price increase due to the tariffs would likely occur in 2026. The impact of the tariffs on the Switch 2 and the gaming industry as a whole is uncertain, with many questions surrounding the US market in 2026. The Entertainment Software Association's Senior Vice President Aubrey Quinn warns that the tariffs will have a detrimental impact on the video game industry, citing the far-reaching effects of compounded tariffs on products sourced from multiple countries. The announcement of the tariffs has created a challenging backdrop for the reveal of the Switch 2, with many experts speculating about the potential consequences for the gaming industry.