Is there a possibility for Nintendo to produce Switch 2 devices within the U.S., thereby bypassing tariffs, as some have speculated given the ongoing tariff discussions? This question arises amidst the recent media attention surrounding tariffs.
According to Joseph Foudy, a professor of economics at the New York University Stern School of Business, if Nintendo were to attempt something like this, it would likely require “multiple years” for them to establish and run such an operation effectively.
According to Foudy’s statement to Polygon, it seems that Nintendo might be planning to establish a manufacturing plant for final product assembly within the United States. This would involve locating suitable land, constructing the necessary facilities, and hiring a local workforce.
Regardless of setting up factories in the U.S., it’s important to note that manufacturing the Switch 2’s specialized components takes place globally. This would subject these parts to tariffs when imported into the country. Additionally, staffing a factory in the U.S. could be expensive due to labor costs, which are often higher domestically compared to other countries.
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Trump recently reduced tariffs for Vietnam and Cambodia to 10%, effective immediately, while increasing tariff rates to 145% on goods originating from China. Interestingly, about a third of Switch 2 devices are manufactured in Vietnam, with the remaining portions produced in places like Cambodia and China. This information is based on reports by Bloomberg.
Trump announced that he’s putting a temporary halt of 90 days on any new tariff agreements, starting immediately and lasting until around early July. However, the Switch 2 is set to launch on June 5th.
According to the statements made by Nintendo of America’s president, Doug Bowser, some Nintendo Switch 2 consoles have already been transported to America and are currently stored in warehouses ready for distribution.
Initially scheduled to start on April 9, two pre-orders in the U.S. were anticipated, but Nintendo postponed them due to tariff issues. With the situation now more resolved, fans are eagerly awaiting a fresh announcement from Nintendo regarding a new pre-order date.
In terms of current value, the Switch 2 costs around $50 more than its initial release price of $300 USD back in March 2017, after accounting for inflation. Nintendo’s Bill Trinen justifies this increase by stating that over time, everything becomes more expensive, including their consoles. Some critics argue, however, that Nintendo is raising prices due to consumer demand and willingness to pay the higher cost.
Even though the Switch 2 comes at a higher price point, it appears that Nintendo will incur a loss with each console sold – this kind of financial struggle is usually experienced by manufacturers during the initial phases of a new console’s release.
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2025-04-10 18:39