Tariff suspension Nintendo wins more time to prepare for Switch 2 first

2025-04-11 22:38:47|Myriagame |source：minecraft skins

After announcing the suspension of tariffs, the pricing pressure of Nintendo Switch 2 in the United States was relieved.When it is released on June 5, this console should be available everywhere at the announced price.

Bloomberg's latest report said that according to Nintendo's plan, there will be enough inventory to meet demand when it starts.According to the latest customs data provided by NBD, Hosiden, one of the three major Vietnam assembly companies in Switch 2, shipped a total of 785,700 units in February, of which 725,200 were shipped to the United States, more than the previous six months combined.

With the suspension of tariff threats, Nintendo can concentrate its entire production capacity in Vietnam to supply the U.S. market, indicating that millions of consoles can be shipped out of Vietnam in time before they go on sale in June.

As for what impact the after-sale tariffs may have on the Nintendo Switch 2 price, there is more uncertainty.If the tariffs remain at 10%, Nintendo could maintain its announced $499.99 price and sacrifice some profit margins, according to Bernstein analyst Robin Zhu.This is done because the company wants to ensure that the system thrives, thereby expanding its user base and making its diversification strategy around its iconic IP more successful.However, if the tariffs are raised to 46%, the price of the host is expected to rise between $50 and $100.

Considering the latest developments, reservations for the Switch 2 in the United States and Canada should be open soon, ready for the June 5 release.However, not all Nintendo fans around the world will get the console on that day, because its release in China has been postponed indefinitely.

Original text of Bloomberg report:

The most punitive tariff suspension in the U.S. in a century has provided Nintendo with a valuable window of time to prepare for its significant June new console launch and temporarily alleviate pricing pressures.

The 90-day tariff grace period applies to most U.S. trading partners, giving the Japanese company the opportunity to increase Switch 2 shipments to the U.S. market, which accounts for more than a third of its sales.

About one-third of the Switch 2 is assembled in Vietnam and will face a 46% tariff if planned, but now it only needs to face the 10% universal tariff imposed by the Trump administration.Nintendo can make the most of this capacity to focus on the U.S. market and stockpile as much inventory as possible over the next three months.

The company is preparing for the release of the largest gaming console in the industry.According to customs data provided by NBD, Hosiden, one of the three major Switch 2 major assemblers, shipped equipment from Vietnam to the United States in February exceeded the combined six months.This shows that Nintendo can promptly mobilize inventory of millions of consoles from the Southeast Asian country to cope with the June release.

It is worth noting that data shows that since January, almost all of Hosiden's products have been sold to the United States, compared with about 11% to two-thirds of the previous 12 months.Kyoto-based Nintendo shares rose 12% on Thursday.

For Nintendo, there is no Plan B (optional) besides the $450 Switch 2; this console will soon become a key platform for its popular gaming series.Nintendo is diversifying its business through movies, merchandise and theme parks to better utilize its rich intellectual property (IP) library and beloved characters, but to do that, it must have a thriving platform and an expanding user base.

"If the tariffs remain at 10%, Nintendo could maintain a $450 price, with the company taking the loss in profits at its own expense. If Vietnam's tariffs reach 46%, I expect they will raise the price by $50 to $100."

Nintendo has delayed pre-orders in the U.S. to fully assess the impact of new tariffs — announced just hours after Nintendo held an online launch conference, announced the Switch 2 price and the starting game lineup.The company has spent months developing strategies for the global launch of the console and ensuring that the first batch of devices can be delivered to players rather than fall into the hands of scalpers.For example, the company prioritizes customers who have Switch Online membership and have plenty of time to play on the Switch..

Like the movie premiere, the initial window of the console's launch is crucial.It can inspire interest from groups outside loyal users and lay the foundation for a quick start for flagship games.Sony Group released the PS5 at the end of 2020, but due to the impact of the epidemic on logistics and supply, it took several years to accumulate market momentum.

Today, Nintendo may face similar challenges in shipping from Vietnam, which is also a base for major U.S. exporters such as Nike and Adidas.While Vietnam and the United States have begun negotiations to avoid tariff hikes, most companies may accelerate shipments to the United States within 90 days, delivering as much as possible.

U.S. tariffs on goods imported from China were raised to 125% as part of Trump's reversal on Wednesday's specific tariff policy for most other countries.This makes it too expensive to ship Nintendo's products made in China to the United States, and also poses a challenge to its competitors."We estimate the Switch 2's material cost (BOM) is about $400, which means that even under the 10% tariff, Nintendo will still lose money in the U.S. sales consoles, but this loss is something Nintendo can bear," said Toyo Securities analyst Hideki Yasuda. "Sony is in a more difficult situation because most of its PlayStation is produced in China and may be forced to raise the price of the PS5 in the U.S. market in the future."

Personal computer (PC) manufacturers showed a way to deal with tariff uncertainty in the first quarter: stockpiling stocks in the United States and canceling discounts.Nintendo, which plans to sell the Switch 2, which is under $350, may do everything possible to avoid further price increases.

The price of the Switch 2 has been higher than the original Switch, and Nintendo has also announced its first $80 console game Mario Kart: World. Nintendo is facing pressure to convince players to pay more for devices and software, and rising production costs have pushed up software prices.

The U.S. tariff threat still exists, but at least the situation around the Switch 2 launch window is clearer.This has brought Nintendo's stock price to a price that traded in Tokyo to within 1% of Trump's "Liberation Day" speech, which sparked strong responses in the global market.

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