Nintendo’s recent decision to postpone preorders for the anticipated Switch 2 in the United States has raised questions regarding potential price changes prompted by Donald Trump’s tariffs on imports. The company is evaluating how these tariffs might affect the production costs of the console, currently listed at $450.
Industry analysts are generally skeptical about the likelihood of an immediate price hike. However, they caution that the tariffs could have long-term implications for the pricing and availability of the Switch 2 in the U.S.
Price Considerations
David Cole, CEO of DFC Intelligence, commented in a recent analyst note that the company is projecting a potential “20 percent price increase over the next two years” across all gaming hardware due to ongoing economic challenges. He noted that much of this price increase is already integrated into the Switch 2’s base price of $450, indicating that Nintendo is “not likely” to raise it further at this stage.
Other experts in the gaming industry share this sentiment. Dr. Serkan Toto of Kantan Games expressed to GamesIndustry.biz that it is too late for Nintendo to increase the price if such an option was ever viable. He explained that the company had being assessing tariff impacts all along and likely factored this into their pricing strategy.
Nintendo of America President Doug Bowser spoke with NPR, asserting that the $450 price point was based on existing tariffs and revealed no immediate impact from the recently announced tariffs. He acknowledged the company’s ongoing process of evaluating the effects of the new tariffs declared just after Nintendo’s pricing announcement.
Niko Partners analyst Daniel Ahmad shared insights suggesting that the reciprocal tariffs on Vietnam and Japan may exceed initial expectations, which could affect Nintendo’s cost structure if they come into full force. Despite this, he believes that a price increase at this time remains improbable.
Contrary to this, Wedbush Securities’ Dan Ives proposed to NBC News that Nintendo must determine how to price their product amid these challenges, contemplating options that could lead to substantial increases, potentially doubling the cost.
Furthermore, some analysts suggest that Nintendo may have mitigated some of the financial impact of the tariffs by increasing shipments prior to their implementation. MST Financial’s David Gibson estimated that Nintendo shipped around 383,000 Switch 2 units from Vietnam to the U.S. in January, with increased shipments continuing through February and March.
Future Pricing Uncertainty
Beyond short-term pricing changes, analysts overwhelmingly agree that Trump’s tariffs will complicate any future decreases in the price of the Switch 2. Cole from DFC Intelligence indicated that his firm had initially anticipated a 20 percent decrease in prices within the next year but is now holding those prices steady in light of tariff implications. Ahmad from Niko Partners echoed this sentiment, stating that a price drop for the Switch 2 seems unlikely within its first five years, especially due to rising component costs.
Some industry experts speculate that continued tariffs could lead Nintendo to consider raising prices after the initial launch phase. Ampere Analysis’ Piers Harding-Rolls foresees the possibility of price increases in 2026 if tariff pressures persist, emphasizing the significance of the U.S. market for Nintendo and their strategy to balance hardware margins through increased eShop revenue and monetization efforts.
Shifting production to the U.S. could theoretically shield Nintendo from these tariff impacts, but this would entail a substantial investment of “tens of billions of dollars” and a lengthy development timeframe of four to five years to establish a factory capable of such production. Ives also noted that individual components would still likely incur tariffs, irrespective of where the final assembly takes place.
Moreover, Ahmad highlighted the challenges of finding and training a U.S. workforce, noting that labor costs would be significantly higher than in Vietnam. These factors would likely push the price of a U.S.-produced Switch well above the current $450 mark.
Despite economic uncertainties and pricing worries, analysts generally anticipate strong initial sales for the Switch 2. However, Cole did suggest that Nintendo might consider scaling back manufacturing due to these uncertainties, warning that if tariffs lead to significant price increases, many potential buyers may delay their purchases.
As a result of these factors, DFC lowered its first-year global sales forecast for the Switch 2 from 17 million to 15 million units, although Cole maintains that the console is likely to set records as the fastest-selling system in its first two years despite the lowered expectations.
Circana analyst Dan Piscatella also noted that while tariffs may not deter “price-insensitive super enthusiasts” eager to buy the limited quantities available at launch, the true test for sales will occur in the second year, as supply chain dynamics are expected to evolve, broadening the target market over the coming months.
