As a fervent admirer, I must admit that the $450 price point of The Switch 2 left me taken aback. Many fellow enthusiasts have expressed their surprise too, using words like “pricey.” Yet, industry experts seem to believe this steep cost could be due to nothing more than U.S tariffs.
Starting from April 5, 2025, President Donald Trump of the United States will institute a 10% basic tax on imported goods entering the country. This action is likely to cause an immediate rise in the prices of various products within the U.S., as numerous non-American goods may become more expensive.
Among the countries most affected are China, Cambodia, Vietnam, Malaysia, and Bangladesh, according to the BBC. They’ve reported that tariffs can go up to a staggering 50%. But it’s worth noting that imported Chinese goods have experienced an increase of around 20% in price, which stands out significantly.
This pricing is due to the historical manufacturing of gaming equipment such as the Switch in China, which helps reduce costs. Experts suggest that the tariffs have impacted the cost structure, potentially leading to the estimated $450 price point for the Switch 2.
Switch 2 $450 price tag likely down to Trump tariffs
In an interview with The Financial Times, Serkan Toto – a Japan-based gaming expert and the founder of Kantan Games – posits that the Trump tariffs may be the reason behind Nintendo‘s price increases. His theory is that Nintendo was proactively creating a safety net to cushion potential disruptions in their supply chains should the tariffs turn out to be more impactful than anticipated.
According to a Financial Times report, it’s been mentioned that Nintendo has started sending over two hundred thousand units of the Switch 2 to the U.S., manufactured in Vietnamese factories. This move is aimed at minimizing Nintendo’s dependency on Chinese production and thus preventing potential price increases.
A different analysis uncovered the fact that over half of Nintendo’s imported gaming hardware in the U.S. comes from Vietnam and Cambodia. Notably, Nintendo has announced plans to launch a Switch 2 model exclusively in Japan, priced at 49,980 yen ($334), rather than the $450 price point in the United States.
It’s not entirely clear why there’s such a price discrepancy, but many speculate it could be due to the weak Japanese Yen and strong consumer spending power in Japan. Given that the Switch is currently the top-selling console in Japan, with Statista reporting over 3 million units sold in 2024 compared to about 1.45 million PS5 sales, this seems a plausible explanation.
Due to the robust sales within Japan, it’s likely that Nintendo is cautious about upsetting their home audience. The exact influence tariffs will have on the pricing of Switch 2 in the United States is uncertain, but there could be a significant increase, especially considering the $80 cost for games – a concern shared by fans of GTA 6.
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2025-04-03 14:19