Analysts and different industry figures have weighed in on the potential impression of US President Donald Trump’s tariffs, together with the upcoming launch of the Nintendo Switch 2.
Trump’s normal 10% tariff fee for sure nations comes into pressure on April 5, 2025, whereas nations affected by variously increased ‘reciprocal’ percentages shall be hit from April 9. The complete impression continues to be coming into focus as nations retaliate.
On this context, it is an especially important week for video games, with the value of the Nintendo Switch 2 revealed shortly earlier than the tariffs have been formally unveiled on April 2. Because of this, it has ignited hypothesis round whether or not the $450 US price ticket for the Switch 2 was partially decided by the incoming menace of tariffs or not.
“It is tough to say for sure,” Mat Piscatella of Circana tells GamesIndustry.biz when requested whether or not he believed Nintendo factored tariffs into the value. “Nonetheless not less than the potential for tariffs was broadly identified earlier than the announcement of pricing round Switch 2 merchandise.
“How a lot potential tariffs performed as half of the dedication of that pricing? I do not know. I would should consider that it was not less than a consideration.”
“Nintendo most definitely ran simulations to get to a value that may make them tariff-proof as a lot as attainable”
Dr Serkan Toto, Kantan Games
The specifics of the tariffs have been more durable to foretell.
“Now whether or not or not the scale and scope of the tariffs, as they have been introduced yesterday, have been thought-about attainable is a wholly completely different query,” says Piscatella. “One other open query is what the introduced tariffs might imply in phrases of potential for additional finish shopper value will increase (not only for Nintendo merchandise, however throughout all bodily online game merchandise), significantly in the US.”
When requested by GameSpot about the tariffs and whether or not they could drive the Switch 2 value up in affected nations additional, a Nintendo spokesperson mentioned, “If there are any value modifications, we’ll make an announcement.”
Nintendo moved some manufacturing of its {hardware} to Vietnam, which was hit with a steep 46% reciprocal tariff. “The reciprocal tariffs on Vietnam and Japan have are available in increased than anticipated, and Nintendo will really feel the impression of this if the tariffs go into full impact,” mentioned Niko Partners.
Nonetheless, Niko Companions don’t count on a value enhance for the Switch 2 based mostly on what was introduced this week. “That being mentioned, we expect it’s unlikely that Nintendo will elevate the value of the console at this level, nevertheless it’s additionally unlikely to see a value drop in the subsequent 5 years.”
Kantan Games’ Dr Serkan Toto agrees {that a} value enhance over the introduced $450 is unlikely. “I consider it’s now too late for Nintendo to drive up the value additional, if that ever was an possibility in the first place,” Toto tells GamesIndustry.biz.
“So far as tariffs go, Nintendo was taking a look at a black field all the manner till April 2 – similar to everyone else,” says Toto. “As a {hardware} producer, Nintendo most definitely ran simulations to get to a value that may make them tariff-proof as a lot as attainable.”
Ampere Evaluation’ Piers Harding-Rolls instructed GameSpot that any value enhance in consequence of the tariffs would probably come additional down the street. “If the tariffs persist, I feel a value enhance in 2026 could be on the desk.”
“All anybody can do at this level is speculate,” says Piscatella when requested about the potential impression of the tariffs on the Switch 2 earlier than and after launch. “We’re actually in uncharted waters right here, and nobody actually is aware of what’s going to occur subsequent. The state of affairs is chaotic, to say the least.”
“In relation to the impression on Switch 2, even when further value will increase have been to return, I am not too fearful about gross sales of the console in 2025. Given the restricted portions accessible in a launch yr, and potential modifications to regional allocation of these models, there must be greater than sufficient tremendous fanatic followers and increased revenue households to permit the console to promote out in the US this yr.”
Piscatella provides: “Nonetheless, yr two could be trickier as extra provide ought to grow to be accessible, and as the market might want to shift extra from tremendous fanatics to extra mass-market consumers. However so many questions exist round what the US market will appear like by 2026 that I do not suppose anyone consequence is all that extra probably than one other at the second.”
As for the wider impression on the games industry past the Switch 2, that too is an open query at this level – however a detrimental impression is sort of sure. The Leisure Software program Affiliation’s Senior Vice President Aubrey Quinn told GameFile that tariffs “are going to have an actual and detrimental impression on the online game industry.”
Since elements are sourced from a number of nations, the impact could be far-reaching. “Anyone product {that a} shopper would purchase is prone to be topic to many of the tariffs introduced, all compounded on prime of each other,” Quinn mentioned.
“We’re actually in uncharted waters right here, and nobody actually is aware of what’s going to occur subsequent. The state of affairs is chaotic, to say the least”
Matt Piscatella, Circana
The announcement this week is “not the finish of the story”, Quinn added, both for the US or different nations.
It is a difficult backdrop for the reveal of the follow-up to the third best-selling console of all time. The Switch 2 arrives on June 5 – and lots can occur in two months.
Nonetheless, the console being revealed on the identical day as the tariffs has made them half of the identical story. “I’m conscious that Nintendo communicated the April 2 date earlier than Trump introduced his ‘Liberation Day’, however I’m nonetheless flabbergasted as to why they didn’t postpone the Direct,” says Toto.
“Why on earth would you let your massive information be buried by the tariff information in world mass media? Why would you not look forward to the US to repair their tariffs first and then determine on pricing?
“This is senseless.”