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

The introduction of US President Donald Trump's tariffs has sparked concerns about their potential impact on the gaming industry, particularly with the upcoming launch of the Nintendo Switch 2. As the tariffs come into effect, starting with a general 10% rate on April 5, 2025, and reciprocal percentages for certain countries on April 9, industry experts weigh in on the possible consequences. The $450 US price tag for the Switch 2, announced before the tariffs, has raised questions about whether Nintendo factored these costs into their pricing. According to Mat Piscatella of Circana, it is uncertain whether Nintendo considered tariffs when determining the price, but the potential for tariffs was widely known beforehand. Dr. Serkan Toto of Kantan Games suggests that Nintendo likely ran simulations to find a tariff-proof price. The specifics of the tariffs, however, were harder to predict, leaving room for speculation about potential price increases. A Nintendo spokesperson stated that any price changes would be announced accordingly. With some of Nintendo's hardware manufacturing moving to Vietnam, which faces a steep 46% reciprocal tariff, the company is likely to feel the impact. Despite this, analysts do not expect a price increase for the Switch 2 based on the current announcements. Kantan Games' Dr. Serkan Toto and Niko Partners agree that a price increase is unlikely at this point. Ampere Analysis' Piers Harding-Rolls suggests that any price increase due to tariffs might occur in 2026 if the tariffs persist. The situation is uncertain, with the impact on the Switch 2 and the wider gaming industry still unfolding. The Entertainment Software Association's Senior Vice President Aubrey Quinn notes that tariffs will have a detrimental impact on the video game industry, affecting products with components sourced from multiple countries. As the Switch 2 launch approaches on June 5, the industry waits to see how the tariffs will influence the market.