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

Following the introduction of tariffs by US President Donald Trump, Nintendo has postponed US pre-orders for the Switch 2, initially scheduled for April 9, to a later date, although the console's launch on June 5 remains unchanged. Analysts and industry experts have been assessing the potential impact of these tariffs, which came into effect on April 5 for certain countries and on April 9 for nations with higher 'reciprocal' percentages. The full effects of the tariffs are still unfolding as countries respond with their own measures. The price of the Nintendo Switch 2, revealed just before the tariffs were officially announced, has sparked speculation about whether the $450 US price tag was influenced by the looming threat of tariffs. According to Mat Piscatella of Circana, it is challenging to determine with certainty whether Nintendo factored tariffs into the pricing, but it is likely that the potential for tariffs was a consideration. Dr. Serkan Toto of Kantan Games suggests that Nintendo probably ran simulations to determine a price that would minimize the impact of tariffs. The specifics of the tariffs were difficult to predict, and the scale and scope of the tariffs may lead to further price increases for consumers, not just for Nintendo products but across all physical video game products. A Nintendo spokesperson stated that if there are any price changes, the company will make an announcement. 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 recent announcements. Kantan Games' Dr. Serkan Toto agrees that a price increase above the announced $450 is unlikely, as it is now too late for Nintendo to raise the price further. Ampere Analysis' Piers Harding-Rolls believes that any price increase resulting from the tariffs would likely occur in 2026 if the tariffs persist. The situation is uncertain, and the potential impact of the tariffs on the Switch 2 and the wider gaming industry is still unclear. The Entertainment Software Association's Senior Vice President Aubrey Quinn notes that tariffs will have a real and detrimental impact on the video game industry, particularly since components are sourced from multiple countries. The announcement of the tariffs is not the end of the story, and the reveal of the Switch 2 on June 5 will be closely watched.