Nintendo Assessing Impact of US Tariffs
Nintendo Switch 2 Pricing and New Tariffs
Doug Bowser, president of Nintendo of America, has stated that the company’s pricing strategy for the Nintendo Switch 2 did not initially account for potential tariffs imposed by the U.S., as reported by Wired.
Console Launch and Tariff Announcement
Last week saw the unveiling of Nintendo’s much-awaited Switch 2 console. The announced release date is June 5th, with a price point of $450. However, a subsequent announcement from President Donald Trump regarding extensive tariffs on imported goods created economic uncertainty.
Impact on Preorders
The planned start date for U.S. preorders, originally set for April 9th, has been postponed. Nintendo is currently evaluating how to navigate the new tariff situation before allowing consumers in the U.S. to place their orders.
Manufacturing Locations and Tariff Rates
A significant portion of the Switch 2’s components are assembled and manufactured in China, Vietnam, and Cambodia. Under the newly proposed tariffs, China faces a 54% levy.
Vietnam and Cambodia will be subject to tariffs of 46% and 49%, respectively.
Diversification of Production
Bowser indicated that Nintendo had proactively initiated efforts to diversify its manufacturing locations. The company has already shifted a considerable amount of production away from China to alternative countries.
This move was intended to mitigate potential risks associated with concentrated manufacturing, though the extent of its impact on the current tariff situation remains to be seen.
