Officially From Nintendo Nintendo Halts Switch 2 Pre-Orders Over Trump's Tariffs
https://kotaku.com/switch-2-preorder-price-tariff-trump-nintendo-185177476432
u/dimforest 1d ago
The people in this thread claiming this is just an excuse to revisit pricing after online backlash or whatever are completely underestimating the severity of the tariffs. These tariffs aren't a minor bump, they're substantially increased.
For reference, Nintendo moved production out of Japan in the past to save a couple percentages of tariff charges. The new tariffs aren't a couple percentages higher, they're tens of percentages higher. And they're global, so there isn't a plant they currently use anywhere that will avoid them. Basically their options are to throw a TON of money into building in the US, Russia, or North Korea..... Or to substantially raise prices to compensate....or to just sell everything at a loss and hope for the best in the next US election.
It's a really shitty position to be in for a company like Nintendo. They have to completely rethink their strategy for the next 3+ years.
For anybody suggesting they just switch (lol) manufacturing of US Switch 2's to the United States, that costs an insane amount of time and money and could take upwards of 3-5 years to even properly complete. The console is set to release in June of this year. And with the possibility looming that these tariffs will all be reversed at any moment or after the next election... It makes zero business sense to do it. Manufacturing in the US even without this tariffs situation isn't cheap, either. There is a reason why US companies manufacture their products outside of the US.
This is just an all around shitty situation.
3
2
u/SuitableFan6634 1d ago
It's not just a shitty situation for Nintendo. It's also a shitty situation for consumers in the USA. Day 1 early adopter Americans are the ones who will be paying the tariffs. Or gambling with grey imports (something Nintendo were trying hard to avoid) without warranty.
5
u/Yeah_SorryNotSorry 19h ago
Maybe Americans will finally realize how it’s important to vote.
1
u/jakefromadventurtime 17h ago
The country who just put a pedophile felon Nazi in office? I doubt it I gave up on us this time
→ More replies (1)0
u/crackdown5 14h ago
The sad thing is based on post election analysis that if more ppl had voted Trump's margins would have increased and he might actually have had a mandate for this madness.
1
u/paraplume 12h ago
Source? Sounds about right considering how dumb Americans were at election time but still gonna need a source
1
u/2ICenturySchizoidMan 9h ago
No he wouldn’t lol the only mandate around here is the constitution. The GOP wants you to say shit like this
1
u/showka 24m ago
I hate Trump but I’ve heard analysis by democrats saying this same thing. No I’m not going to produce a source because I can’t remember the exact article and googling for it is difficult but the gist was people who were less enthusiastic voters were less likely to vote democratic in this last election, so Democrats shouldn’t rely on the idea they just getting out the vote will change things in the future. Wanted to second this dude because he’s getting downvoted.
1
1
u/gwalms 10m ago
Whats funny is that the top issue to swing voters that voted Trump over Harris was... Inflation. The inflation that was basically under control by election time. The inflation they voted to increase. I hope swing voters learn to maybe listen to Dems a bit more, considering Kamala literally said Trump would raise prices via tariffs in the debate.
0
u/Synensys 12h ago
This election had high turnout for an American election, and there is no evidence that the people who didn't vote would have voted for Harris (in fact, the opposite)
The lesson isn't that more people should vote. It's that voters should take politicians seriously and generally consider what experts think of their plans.
1
u/Fuck_off_NSA 9h ago
We gave up on experts 5 years ago. We don’t trust them anymore. If you’re an “expert”, they just claim you’re a cog in the machine that’s out to deceive and get everyone.
1
u/eMouse2k 18h ago
Prices are likely to be high on launch day, stock low, possibly no pre-orders, and scalped like crazy, sending prices into the stratosphere. That likely means no significant US market for games when a console usually has tight to no margins with the expectation to make it up with software and services.
1
u/Numerous_Photograph9 5h ago
I have a feeling initial.stock will sell out regardless. Its just US consumers will pay more, and that money isn't going to Nintendo, but to cover tax breaks for the wealthy.
1
u/Capitan_Failure 3h ago
I doubt there will be much scalping. When the obnoxious 46% Tarrif on Vietnam hits, the Switch 2 Price is going to be $730. No ones going to buy it so store shelves will be full, meaning no scarcity for scalpers to profit frlm.
-1
u/ajovialmolecule 8h ago
A shitty situation for Nintendo?! Oh won’t someone think of the shareholders. We Americans are fucked. But, no, you’re right. Shitty situation for Nintendo first and foremost.
1
4
u/Real_TwistedVortex 1d ago
Additionally, even if US production could happen overnight, many countries in the EU and Asia have placed counter-tariffs on the US, which would raise the price everywhere else
2
u/SuitableFan6634 1d ago edited 1d ago
Nintendo would continue to ship units to those countries from Asia where not only will they not be tarrifed, but costs will be cheaper. Manufacturing in the USA is expensive.
The biggest issue with the US price rising is companies like Nintendo, Apple etc use the US price as a baseline for global pricing to reduce grey importing. They'll now need to change that policy.
They're also going to end up with a bunch of grey imported units in the USA where consumers will be told "No, your faulty unit isn't covered by warranty here. Please return it in your country if purchase."
2
4
u/DepletedPromethium 1d ago
nintendo produces primarily in china like the majority of the world.
americans are the only ones getting cucked by their cheeto in chief every which way.
2
u/Agreeable-Scale-6902 1d ago
Did they not move the production in Vietnam?
The tariff is 46% with them.
1
u/factoid_ 1d ago
They could always bring them back to Japan and ship from there if the tariff is lower
1
u/dawnguard2021 23h ago
The tariff difference doesnt make up for the cost difference. Manufacturing in Japan is way way more expensive than China or Vietnam. There's no point moving production to anywhere its all tariffed to hell.
1
u/factoid_ 23h ago
Not to manufacture just to box up and ship out
It probably still isn’t worth it though
1
1
2
u/NO_SPACE_B4_COMMA 1d ago
You're talking to a wall, honestly.
They love their orange man and will never admit anything bad about orange man.
-1
u/Bootychomper23 20h ago
Their new tactic is paying more for stuff is good… I shit you not now inflation and higher prices are a sign of prosperity and riches…
1
1d ago
[deleted]
0
u/Jrvan07 1d ago
American companies will just raise prices to match tariffed goods prices from abroad.
1
u/Cheap_Television_988 1d ago
Basic fact right here, any company will happily pass the costs onto consumers for the sake of maintaining profit
1
1
u/MrEfficacious 20h ago
Just launch at a higher price due to tariffs. It is what it is. We can complain all day but people will find the money, plain and simple.
1
1
u/Zeeman626 19h ago
For anybody suggesting they just switch (lol) manufacturing of US Switch 2's to the United States, that costs an insane amount of time and money and could take upwards of 3-5 years to even properly complete.
Well said. Just like Trump people don't seem to understand that you don't set up manufacturing plants with trained staff overnight. That's (one of) the reasons such sudden tariffs were a horrible and irresponsible idea, there's no way people can respond appropriately fast enough to reduce the impact and now it would cost even more to make those manufacturing plants since the US doesn't make most of the needed machines here. So we would get tarriffed on the parts we need to build the plants to avoid the tariffs.
1
u/Cyrus_114 17h ago
Exactly.
You talk to Trump supporters who think this is a great idea, and they are always like "Trump is bringing manufacturing back to the U.S.!"
Then you ask them "How long do you think it takes to build the factories? Where are you going to get the raw materials from? Who is going to work in those factories? What do you think it's going to do to the price of the goods when the factory workers need to be paid American wages?"
The response is usually crickets. Just like Trump, they clearly didn't think this through.
1
u/Zeeman626 17h ago
Yup. This is a horrible idea all around, but there was a right way to do it wrongly. Announce tariffs to slowly start increasing year over year, subsidize construction of new plants, and by the time import prices rise to the point of unreasonable there might be some domestic production to offset it a bit. Still not even slightly intelligent, and since he tarriffed literally EVERYTHING there isn't enough room to make a factory for everything that would need to be produced, but at least I could have seen the IDEA if nothing else.
However he doesn't care about doing it right. Just doing it flashy so everyone knows he did something. Same reason he's renaming things and trying to annex neighbors, to leave his mark. Though donating a few billion dollars to cancer research or something would have been an easier way for him to make a name than this farce. He's like 90 he could easily just look for ways to use his fortune productively since he won't need it in a year or so
1
1
u/More-Ad-4503 17h ago
Russia, or North Korea
US has sanctions on these countries. FYI the US killed 1/5th of all North Koreans during the Korean war and destroyed 100% of their infrastructure.
1
u/maki-shi 17h ago
Or fuck American and let Nintendo sell US switch 2 for 1000s dollars? The rest of the world can chill without americans
1
u/crackdown5 14h ago
Even if they have a plant in the US won't they have to still import certain components that will be tariffed? Trump thinks Figi water should be manufactured in the US. Figi just needs to bring their water supply to the US to avoid tariffs.
1
u/thedudedylan 11h ago
If the terrifs hold, we are actually looking at a $650 system at launch.
1
u/sotek2345 5h ago
More like $700 base and $750 bundle using the 46% tariff on Vietnam where it is made.
1
u/ricker182 8h ago
Literally every component is subject to tariff so they have to evaluate everything.
1
u/StrawHat89 6h ago
They would also still be paying tariffs because the US does not produce any of the actual parts you need to put a Switch 2 together. There is no way around this.
1
u/Numerous_Photograph9 5h ago
Regardless of which system people may want, from whatever company that has them, or even PC gamers looking to build or upgrade, its going to drive prices up. There are no facilities in the US that could handle the kind of manufscturing output these systems require. Price drops for PS or XBOX are also not likely anytime soon.
There are also not enough facilities to produce physical media in the US either, so there's a good chance prices will increase there as well
1
u/According_Ad_2597 5h ago
If Americans should be mad that we are paying more, why is Japan mad? Like both can’t be true. If we are paying all of the increased cost like the media says. Then why is Nintendo upset?
1
1
-5
u/ThreedZombies 1d ago
Russia has high tariffs too. But I see what you did there
2
u/sportspadawan13 1d ago
I'm pretty sure they actually don't, or very small like 10%no?
1
u/ThreedZombies 22h ago
The U.S. has imposed heavy sanctions on Russia, which have significantly reduced trade, resulting in approximately $3.5 billion in trade last year. While Russia was not included in the latest round of tariffs announced by President Trump, it still faces high tariffs and sanctions from previous measures, particularly related to its invasion of Ukraine.
1
1
u/dimforest 21h ago
I know you're getting downvoted because of the justified hysteria but you are partially correct. The reason I singled them out here was due entirely to them not being included in the latest round of tariffs.
Regardless, absolutely fair and me singling them out is a tad misleading without context.
6
u/stingertc 1d ago
man Switch 2 gonna be 600 hundred if they dont do something ouch
2
u/Jandre999 1d ago
That's what I will pay in Norway. It's ridiculous and ruined the fun
3
u/BornTooSlow 1d ago
Bruh, I'm going to Norway from the UK in June, shall I bring some over
2
u/Jandre999 1d ago
I would love to pay the UK price rather than this crap. Seems all stores agreed on a price to milk us for money
2
u/BornTooSlow 1d ago
A handful of our retailers in the UK are actually fighting to sell them. I've bagged a launch bundle with a 256gb Micro SD Express for less than RRP.
But also, it means living in the UK.
1
u/Jandre999 1d ago
Well at least living in the UK is a littttttle less bad now. I'll get a 1TB card as soon as I'm able to. My wallet screams
2
u/StonewoodNutter 10h ago
The Switch 2 will help pass the time during your 6 month long wait to see your doctor for your appointment that really needed to be resolved now… not in 6 months.
1
1
u/TheAverageOhtaku 1d ago
We're paying $629.99 in Canada. :/
2
1
1
1
1
1
1
u/TheBrave-Zero 1d ago
I've seen some estimates putting switch 2 closer to 700 i belive it's vietnam they're made in and the tariffs something like 48%?
1
1
u/External_Produce7781 23h ago
49% tariff means itll be 750, my guy. Because theyre going to go for a round number.
3
u/kuribosshoe0 1d ago
Lol well done, America. Kicking own-goals at a professional level.
1
u/Lakku-82 17h ago
It’s worse than that. The US pulled the goalie and fielded 11 Casemiros. Not Madrid casemiro, old ass united casemiro
2
2
2
u/TOAOFriedPickleBoy 2h ago
Breaking: Despite it only being April, Trump has already ruined Christmas.
2
u/Otherwise-Diet-6673 1d ago
This is what Americans voted for. I don't feel the least bit bad for them. FAFO. Nintendo should raise the price in the US to 550$ instead of 450$ and then lower the price in other countries. Like in Canada, instead of 629$, it should be like 570$.
6
1
u/SalamanderPop 1d ago
Why would they lower it in other countries? Nintendo doesn't give a shit about politics. They just want to make money. Raising the price to 550 would cover the new US tariff for consoles sold in the US. They aren't going to knee cap themselves around the rest of the world when they are merely breaking even.
1
u/External_Produce7781 23h ago
... its a 49% tariff. 50$ is NOT going to "cover it". Essentially 50% of 500 is 250$.
1
u/SalamanderPop 22h ago
Hey man, let's be clear here, neither of us know what we are talking about because determining the tariff on a product is a lot more complicated than that — for instance, the tariff isn't determined from the MSRP — so there is no reason to argue at this level of nuance. Neither of us are likely to be correct.
1
u/Dan1elSan 15h ago
It puts Nintendo in a difficult position because the tariff is on the declared value of the product. It’s not complex and they will already be declaring a value of the product for import anyway.
Whatever this number is…$50 is not going to cover it they’re not declaring the product value at ~$100
1
u/Numerous_Photograph9 5h ago
Its not complex, but its only been a few days, and they probably want to get it right. Also, trying to declare a lowered value to avoid tariffs doesn't usually work too well for those that ship a lot, so chances are they're not going to try. Nintendo will just pass any additional cost to the consumer regardless, and the only downside is that it'll reduce demand.as the price is higher.
1
u/GrantInwood 21h ago
lol, they certainly “give a shit” about politics since it affects everything, including what tariffs are paid.
I always find it funny when people who are “non political” complain about the high cost of living. What do you think affects this? Magic pixie dust? The grace of god?
Politics is about who has power and who does not. People confuse partisanship and politics. They are related but distinct.
1
u/SchroedingersSphere 13h ago
You're living in a fantasy world if you think a 49% tariffs is going to be covered by just $50. We're looking at hundreds. Plural.
0
u/happycows808 1d ago
They do care about politics or else they wouldn't have canceled pre-orders. Politics is in everything we do. Countries are actively putting trade agreements together to exclude the USA. If Japan and Canada and other countries get together and reduce tarrifs and come to free trade agreements you bet your ass Nintendo will actively sell them cheaper and show America that they are missing out in order to get that market back.
Its a trade war.
1
u/thedudedylan 11h ago
Actually, they will probably raise their prices in other counties to recup the losses they will make im the US.
These terrifs literally hurt everyone.
1
u/Numerous_Photograph9 5h ago
Nintendo isn't trying to make a political statement here. They just don't want to sell pre-orders for a price lower than their expected retail price. If they sold them now, they'd wither have to cancel the pre-orders, or pay the tariffs themselves, neither of which is a good plan for them.
4
1d ago edited 1d ago
[removed] — view removed comment
1
u/seraschka 1d ago
Arg, I can see that to leading them to stay form on the $80 game prices and probably even bumping the console and bundle up ~$50-70 each :(
1
u/External_Produce7781 23h ago
do you guys not understand math? Its a nearly 50% tariff (46 or 49%).
Cal lit 50% for round numbers because suits who decide numbres WILL do that.
50% of 500 is 250. Its going to add TWO HUNRDRED FIFTY DOLLARS to the price.
1
u/seraschka 22h ago
Right, but they may have anticipated some tariffs. Also, I don't think they will literally pass on the whole tariff percentage onto customers. (Maybe wishful thinking, but at least I hope not!)
They probably have a good margin on the consoles. Say $300 manufacturing cost and a $150 margin. With the 10% universal tariff and the %34 China tariff, the 44% of $300 are $132. So if they increase the price only by $50-100 they could still come out ahead.
Especially since prices like $499 or $529 are more palatable than $649 and if they can sell >2× more at the lower price then the $529 strategy becomes more profitable.
2
u/SrirachaSandwich27 10h ago
I’m no expert, but from what I read console margins are not usually where the money is made.
I know for earlier generations consoles were sold at an actual loss, but with profits being made on games sold locked to that console. This makes sense in that Nintendo games had a pretty significant price hike, and Nintendo games are obviously exclusive to the console itself.
Again I’m no expert, but I don’t think it’s safe to assume consoles have good margins, when ecosystem based hardware often operate this way.
1
u/seraschka 10h ago
I agree, and I remember the PlayStation 3 being sold at a loss back then. But I always thought Nintendo was a bit of an exception.
I was mainly thinking of the 3DS here where they slashed the price from $249.99 to $169.99 once they noticed the console didn't sell well.
That's mainly also why I am thinking that they probably won't apply the whole tariff price increase here.
1
1
u/SuitableFan6634 1d ago
"halts pre-orders... in the USA"
It's business as usual in the rest of the world. Got my pre-order in yesterday.
1
u/factoid_ 1d ago
In other words they’re waiting to see how expensive actually going to be
And everyone already though it was too much
Good job trumpers
1
u/Practical-Dingo-7261 23h ago edited 23h ago
They don't want customers pre-ordering at one price, and then them holding the bag when their imported product gets dinged with tariffs that weren't previously built into the price.
In other words, I bet the price is probably going up in the States.
1
u/GrossWeather_ 23h ago
Going to cost $200 more next time we see it. this is why you don’t vote for morons.
1
u/DeepBlueVibes1 23h ago
People complaining tariffs had nothing to do with their pricing and it’s just corporate greed hopefully realize now….this was ALWAYS about tariffs. Nintendo probably had multiple price ranges they’ve had and held onto a plan just in case tariffs impacted them severely and it has. They don’t just price a game $80 simply because. They NEED consumer trust but outside factors and orange man in office has forced their hand. Time for gamers that voted for him to reflect and take responsibility
1
1
1
u/MikeD123999 22h ago
Does nintendo make consoles? I could see sony actually making playstations but microsoft and nintendo i assume use a third party? Is there a place in the us that could assemble the switch 2? Kinda assume that it doesnt really exist in the usa?
1
u/Artforartsake99 22h ago
Americans cheap goods are going away. No more dropping shipping anything from China it’s cost prohibitive. He removed the $800 tax free tariff threshold.
I had an automotive product costs $55 to make and $40 to ship to USA customer. = $95 total.
Under new system it gets hit with $51 tariff and $15-20 DHL tariff paying fee and $7 processing fee.
Total is about $176 to land compared to $95. That will happen on every single small drop shipped item so drop shipping is going to suck.
And even shipping the items in $10500 = $5700 in tariffs. That had to be past on to consumer. Higher prices less demand less jobs less profits.
1
u/Cheetahs_never_win 22h ago
People are absolutely delerious if they think they're going to pick up a unit for even $750.
Did everybody just completely forget about PS5s during Covid?
1
u/Lakku-82 17h ago
That’s because TSMC literally shut down for months along with memory makers and other companies. And it took a year or two to get back to normal. That shouldn’t be the same this time around but now we get 50% tariffs!
1
u/Cheetahs_never_win 1h ago
A limited resource is still limited. It won't go on for months and months like before, but it shouldn't shock us if lots of things get hoarded up like toilet paper.
1
1
u/userlivewire 19h ago
Nintendo can sell Switches all over the world no problem. Just not the US. The secondary market will be huge.
1
u/hlm601 18h ago
I was honestly surprised by the timing of the price announcement given Trumps day or ruin plan.
$449 may now be $499 with games being $90.
This isn’t an excuse for a price hike this is a company looking at its bottom line, R&D, manufacturing, materials cost, marketing, shipping, and wondering if they take the hit (which is not of there doing) or pass it on.
That’s not even taking into account any currency changes or extra cost to them from the tariffs impact.
They may already be subsidising the console cost.
(The games are ridiculous though $80 games, nah it’s ok I’ll fly the console around making aeroplane noises)
Please direct any angry to the special little boy who won President for a term.
1
u/hlm601 18h ago
I was honestly surprised by the timing of the price announcement given Trumps day or ruin plan. $449 may now be $499 with games being $90. This isn’t an excuse for a price hike this is a company looking at its bottom line, R&D, manufacturing, materials cost, marketing, shipping, and wondering if they take the hit (which is not of there doing) or pass it on. That’s not even taking into account any currency changes or extra cost to them from the tariffs impact. They may already be subsidising the console cost. (The games are ridiculous though $80 games, nah it’s ok I’ll fly the console around making aeroplane noises) Please direct any angry to the special little boy who won President for a term.
1
u/Yoshiezibz 14h ago
It's such a shame that a portion of the American electorate voted for this baffoon, but this is the only way they will learn.
1
u/Agent101g 13h ago
If you voted for trump you wanted to pay more. He told you for months he was gonna levy tariffs and then lied about what they are, and yall couldn’t be bothered to look up a single word’s definition.
Enjoy the tariffs. I learned how they work in seventh grade by the way.
1
u/MobilePenguins 10h ago
Where would it be cheapest and easiest to travel to for an American to buy one in another country and just fly back with it?
1
1
u/suppaman19 10h ago
What's everyone mad about? The majority of early adopters were going to pay $600 or more to scalpers anyways
/s
1
u/akibaboy65 10h ago
Just cancel it in the US until further notice. It’s for the best, big picture. I guarantee that will be a smaller hit to Nintendo’s stock price… as people will be anticipating when we finally get it… then the hit they’ll take when it comes out and has sales worse than the WiiU as the successor to their single most successful device of all time.
1
1
u/tokyobassist 8h ago
At least the DEI people won't have to worry about DEI in games when they can't afford or make them. Pants on head dipshittery.
I hate this country bro. People literally gaslit themselves into conspiracies they don't want to back down from now that they invested too much time in the lie.
1
1
1
1
1
u/stingertc 1d ago
Agreed I will just wait for steam deck 2
3
u/Loose_Repair9744 1d ago
If you think that won’t also impacted…
-3
u/stingertc 1d ago
Steam deck won't be affected as much due to American company
3
2
2
2
u/NO_SPACE_B4_COMMA 1d ago
They do not manufacture in the US. Steam deck is made in China and will be affected.
1
u/SuitableFan6634 1d ago edited 23h ago
Nintendo America is an American company too (ownership is irrelevant). The units are still being imported from Asia just like the Steamdeck.
1
1
u/NeighborhoodPlane794 3h ago
Sorry to burst your bubble, but American companies like Apple, Valve, Microsoft, etc still need to import parts or assembled products from overseas, which get tariffed. Everything is going to be far more expensive
1
u/SuitableFan6634 1d ago edited 23h ago
The Steam Deck is manufactured in China. Moving manufacturing to the USA, and still paying tarrifs on wholesale components, would cost just as much as the tariffs. Either way, you're fucked if you're in the USA.
1
u/DepletedPromethium 1d ago
dumpy boys fucks over citizens of murca every way possible.
"but he lowered gas prices" lmao.
what a load of horse shite, so glad i dont have to deal with that fucking insanity being in Europe.
1
u/NO_SPACE_B4_COMMA 1d ago
Gas in my area has sharply increased. I went in a work trip for a week and when I left it was at 2.75. when I got back, it was at 3.25.
1
0
u/Awkward_Swimming3326 1d ago
Fair. The Americans can have it when they stop being Nazis.
1
u/Otherwise-Diet-6673 1d ago
Yup. Fuck em. This is what they voted for. I don't feel the least bit bad.
-1
u/phranq 1d ago
Imagine if this was the sentiment about some European countries in the 30s and 40s. Fuck em I guess, they exist, and were likely born, inside of arbitrary borders where their neighbors voted for it. So fuck em.
4
u/The_Flashmeister 1d ago
Actually that kinda was the sentiment. The USA is heading towards isolationism like in the 30s and not surprisingly they had the same "they get what they deserve" to the Europeans when the Spanish Civil War and early ww2 broke out. Even the Holocaust wasn't an objective to stop until after Germany was conquered by the allies.
3
2
0
1d ago
[deleted]
3
2
u/mrbiggbrain 1d ago
It's less that they are raising it again as people did not realize it was going to be higher the MSRP all along. Nintendo baked 10% into the margin to cover tariffs and we are barreling hard towards 50%+. It's not unthinkable the MKW bundle could go for $700+
2
-10
u/Toincossross 1d ago
Call me crazy, but I think this is an excuse to revisit the price based on everyone complaining it’s too expensive.
They will either lower the price or keep it the same but with better marketing around how much of a deal it is because they are eating the tarriffs. Maybe have a one year “price lock guarantee” against price hikes.
10
u/Dark-Arts 1d ago
Ok, you’re crazy.
This is directly related to the US imposing 30+% tariffs on Japanese products. The price is going up, not down, as a result of this pre-order pause, and honestly how could anyone expect it to do anything else after Trump’s tariffs?
2
u/hanaboushi 1d ago
Nintendo has most of the manufacturing in Vietnam so actually 47% tariff
1
13
u/tedivm 1d ago edited 1d ago
The cost of importing the new switch just went up by 54%. There is no world in which they respond to tariffs by lowering their prices when their profit margins have been completely destroyed.
-8
u/Toincossross 1d ago edited 1d ago
They’ve already imported all the launch systems and have them sitting in a warehouse and traditionally hardware is a lost leader to get people to buy games and accessories.
They could lower the price temporarilly to generate excitement as a promotion, then later when the prices go back up start including game downloads as incentives.
7
u/tedivm 1d ago
You're literally making that first part up, and it's the opposite of what Nintendo said in their earnings reports. They are still manufacturing the units needed for launch, and they'll still need to import more after launch to keep up with demand.
2
u/LodossDX 1d ago
If the system is releasing in June, then launch units are likely already here. Nintendo is probably reevaluating how much of their current inventory they will release at launch, holding back some units, spacing out when they drop more in stores. This way they keep the $449 price over the next few months as trade agreements are worked out.
0
u/Toincossross 1d ago
The first part is from “reliable source” rumours from shipment tracking that showed 2 huge shipments in January totalling just under 400k units. The launch availability was rumoured to be 500k units - idk how reliable that is.
You are probably right it’s not all the launch units. I overstated it.
4
u/Dinosaucers_ 1d ago
It’s me, Steve Nintendo. I can confirm that this person has all the inside scoop and knows what they’re talking about. Do not question them.
2
1
u/Numerous_Photograph9 5h ago
Can't speak for the switch, but the ps4 and ps5 were sitting in storage until about 3-4 weeks before launch when they got shipped out to around the world. I suspect supply chains would be similar for nintendo, as theyll spend several months before launch manufacturing systems.
3
u/small___potatoes 1d ago
I’m not sure this is right. A lot has changed since the presentation. Either way Nintendo is definitely scrambling.
2
u/Interesting_Debate30 1d ago
Are you high? The Switch 2 main manufacturing location is Vietnam where they just got hit with with a 46% tarrif increase and you think they might lower the price? The price is going to go way up if anything. Expect a new price in the US closer to $700 or more as long as these idiotic tarrifs remain.
3
2
18
u/tedivm 1d ago