{"id":18619,"date":"2025-04-10T19:13:42","date_gmt":"2025-04-10T19:13:42","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/nintendo-switch-game-console-release-is-whipsawed-by-tariff-threats\/"},"modified":"2025-04-10T19:13:42","modified_gmt":"2025-04-10T19:13:42","slug":"nintendo-switch-game-console-release-is-whipsawed-by-tariff-threats","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/nintendo-switch-game-console-release-is-whipsawed-by-tariff-threats\/","title":{"rendered":"Nintendo Switch Game Console Release Is Whipsawed by Tariff Threats"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">For months, Nintendo, the maker of famed video game series like Super Mario Bros. and Donkey Kong, had expected the morning of April 2 to be a celebration.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">To much fanfare, the company announced the price and release date for the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/nintendo-switch-2.html\" title=\"\">Switch 2<\/a>, its new video game console eight years in the making. At an event in New York City, Doug Bowser, Nintendo of America\u2019s president, took the stage as fans cheered the arrival of new games to accompany the console; Mario Kart, Donkey Kong and Kirby among them.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Then, later that same day, President Trump announced tariffs that sent <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/trump-tariffs-global-stock-markets.html\" title=\"\">global stock markets reeling<\/a> and put the Mario party in jeopardy. The new Switch was made in Vietnam, one of the countries on the tariff list.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Two days later, Nintendo said it was <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/04\/business\/economy\/nintendo-switch-2-preorder-delay-tariffs.html\" title=\"\">delaying pre-orders for the Switch 2<\/a> and possibly raising the price from $450. Just how high was unclear. But on Wednesday, Mr. Trump said he was delaying expanded tariffs on Vietnam and many other countries for 90 days. Nintendo has yet to say how the delay will affect the Switch 2\u2019s price.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Nintendo\u2019s whipsaw experience shows the broader chaos Mr. Trump\u2019s on-and-off tariffs have caused for technology manufacturers, and the uncertainty of what the market will look like for consumer technology in the coming months.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In a statement before Mr. Trump delayed his expanded tariffs on countries other than China, Nintendo said it still planned to release the Switch 2 in June, but it did not set a date for when it would reopen pre-orders or announce a new price.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Gamers had already taken to social media sites like X and Reddit by the thousands to complain. While it\u2019s a common practice in the industry for gamers to blame the high cost of consoles and games on corporate greed, they turned instead to blaming Mr. Trump.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Jake Steinberg, a gamer and a writer from Philadelphia, visited New York last week to play a demo of the Switch 2. Now he\u2019s unsure how much added cost he would be willing to take on.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThere\u2019s an extreme amount of irony, because people always said this refrain, \u2018Keep politics out of games,\u2019\u201d Mr. Steinberg said. \u201cWell, here they are.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">For years, Nintendo manufactured its gaming consoles in China. But it moved most of its production to Vietnam in 2019, during Mr. Trump\u2019s first term, to sidestep tariffs and the threat of a trade war between China and the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Those maneuvers appeared to be for nothing as Mr. Trump\u2019s plans announced last week threatened hefty new tariffs on goods from Vietnam (46 percent), Japan (24 percent), Malaysia (24 percent) and Cambodia (49 percent), leaving manufacturers in the region with few options.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But because of the delay announced Wednesday, Nintendo may be one of the lucky ones. A majority of consumer electronics, including smartphones and other gaming consoles, are still made in China. And they are expected to be subject to 145 percent tariffs \u2014 bigger than just a few days ago. Products made in Vietnam, like most countries, are still being hit with a 10 percent tariff.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The delay gives Nintendo 90 days to increase production and stock up on inventory in the United States, said Michael Pachter, an analyst at Wedbush Securities. But for other tech companies like Apple, which typically doesn\u2019t start producing new iPhones until months before the release date, that may not be an option.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Nintendo could still end up playing the delicate game of deciding how much it can raise the price without turning away gamers \u2014 many of whom already felt $450 was steep enough \u2014 or holding out hope that it won\u2019t in the end be hit by the expanded tariffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For gaming companies like Nintendo, Sony and Microsoft, selling consoles is only one aspect of their business: If customers choose not to buy a new console, they also won\u2019t be able to purchase the software for the games themselves, which sell at higher margins than hardware.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While the cost of consumer tech products could rise across the board, Mr. Pachter added, price increases on buzzy items that people wait years for \u2014 like the Switch 2, the first console released by Nintendo since 2017 \u2014 are most likely to create consumer outrage. He estimated that the new cost of the Switch 2 could be increased by as much as $100 if the Trump administration went ahead with the tariffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cPeople aren\u2019t going to notice if the price of TVs go up, because no one\u2019s waiting for June 5th to buy their TV,\u201d Mr. Pachter said. \u201cThey\u2019ll notice that gradually. But it\u2019s different for a product launch like this.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In interviews with the news media before Mr. Trump\u2019s tariffs were announced, Mr. Bowser of Nintendo said the expected cost of future tariffs was not factored into the console\u2019s $450 price. But analysts largely dispute that claim, pointing to the $340 price of the Switch 2 being sold in Japan. (A Nintendo spokesman said the Japanese model is restricted to the Japanese language, which is partly why it has a lower cost.)<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Nintendo will probably wait for the dust to settle on Mr. Trump\u2019s tariff chaos before announcing a new price, said Doug Creutz, an analyst at Cowen, an investment firm. And, he added, there was still a possibility that Mr. Trump would back out of the tariffs altogether.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThey don\u2019t want to have to change their price a second time,\u201d Mr. Creutz said. Among the decisions he said that the company is weighing: \u201cAre we willing to take less profit in the U.S.? Do we want to protect our profit margin?\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Nintendo has not delayed pre-orders for the Switch 2 elsewhere in the world, where the cost varies by region; $442 in Britain, $435 in Australia, $450 in Canada. Nintendo still does around 30 percent of its manufacturing in China, which it uses to supply non-U.S. buyers, said David Gibson, an analyst at MST Financial.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">What will help offset some of the cost, in the short term, is that by the end of February, Nintendo had already shipped 746,000 units of the Switch 2 to the United States, which are immune to the tariffs if they are reinstated, Mr. Gibson said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThat will protect them for one quarter,\u201d he added. \u201cBut after that, the price will be full tariff.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Nintendo is not the only tech company weighing the trade-offs of raising prices on its products. Apple similarly moved some of its manufacturing to Vietnam from China in 2019. Other console makers like Sony and Microsoft will face a similar dilemma when they manufacture their next consoles, which are expected to be released sometime around 2027.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt\u2019s going to hit all the large consumer electronics companies: Samsung, LG, Apple, the big TV manufacturers, the game consoles,\u201d Mr. Gibson said. \u201cIt\u2019s everything.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/10\/technology\/nintendo-switch-tariffs-trump.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For months, Nintendo, the maker of famed video game series like Super Mario Bros. and Donkey Kong, had expected the<\/p>\n","protected":false},"author":1,"featured_media":18620,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[513,239,114,135,338,5828,134,113,829],"class_list":["post-18619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-computer-and-video-games","tag-customs-tariff","tag-donald-j","tag-fees-and-rates","tag-international-trade-and-world-market","tag-nintendo-co-ltd","tag-prices-fares","tag-trump","tag-vietnam"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - 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