A stagnation on the most punished American tariff in the hands of a century is a valuable time to increase the important launch of its new console and increase pricing pressure. For now.
Most American trading partners offer a 90-day repetition nintendo on high tariffs for most of the American trading partners to ramp their upcoming switch 2 console in a market that eats for more than one third of its sales. A third of the switch 2 units is collected in Vietnam – which was under 46 percent of the levy, but now only 10 percent of the universal tariffs imposed by the administration of Donald Trump are faced – so Nintendo can focus on all production on Nintendo America and stock more and more units in the next three months. That period includes the release date of the June 5 gadget.
Shares of Kyoto -based Games maker jumped a 10 percent jump in Thursday’s open in Tokyo, showing the importance of debut. There is no plan B for the company beyond Switch 2, which will soon be the major platform for its popular game franchise. Nintendo to better tap an intellectual property and a rich library of dear characters to diversify its business – through film, goods and theme parks – but to do so, it must be a prosperous platform and expand the user base.
Bernstein analyst Robin Zhu said, “If the tariffs live at 10 percent, the nintendo probably priced at $ 450 and simply takes a hit on the margin,” said Robin Zhu, analyst of Bernstein. “46 percent in Vietnam tariff, I expected they would grow from $ 50 to $ 100.”
Nintendo delayed pre-orgasines in the US to fully assess the impact of the new tariff-which was announced only after unveiling the price of switch 2 of Nintendo’s online event and unveiling the launch game lineup. The company has spent strategic months for the global release of the console and has ensured the land of the first units with gamers and not with scalpers. For example, in the UK, this switch is giving preference to customers over online subscriptions and switch over the switch.
The initial launch window game is an important time for the game console, as with a movie premiere. It creates interest beyond loyal users and sets a marki title for rapid start. Playstation 5 of Sony Group released in late 2020 took years to gain momentum due to the impact of epidemic on logistics and availability. Nintendo may now face similar challenges with shipping to their devices from Vietnam, which is also home to other major exporters such as Nike and Adidas. While Vietnam and the United States have started talks for the viresal elevated tariffs, most companies are likely to hurry for delivery in the US that they can ship in 90 days.
On imports from China, the US levy was increased by Trump to 125 percent on Wednesday as part of the reversal of the country-specific tariffs for most other countries. This makes the Nintendo prohibiting its manufactured production in the US to ship production and is also a challenge for its rivals.
“We believe that the Bill of the content of Switch 2 is around $ 400, which means that the nintendo will still be selling console in a disadvantage with 10 percent tariff in the US – but the disadvantage will be something that will be able to absorb Nintendo,” said Hydeki Yasuda of Toys Securities. “Sony is in a difficult situation because most of its playstation production is in China, and it can be forced to increase the PS5 prices in the US in the near future.”
PC manufacturers showed a way to navigate tariff uncertainty in the first quarter by stocking inventory in the US and removing it with discounts. Nintendo, which plans to sell only one Japan-Kaval version of Switch 2, costs everything to avoid an increase in further prices.
Switch 2 already marks a climb in the price from the original switch, Plus Nintendo also announced the first $ 80 console game with its Mario Cart World. The company faces the burden of explaining the players to spend more for the device and software, whose prices have been pushed into the cost of production.
The US tariff danger is still taxing, but now at least the picture is clear around the launch window of Switch 2. This Tokyo-traded stocks of Nintendo have been brought back within 1 percent where they were before Trump’s liberation day speech which are revived in global markets.
© 2025 Bloomberg LP
