It has become known why the Nintendo Switch 2 has not become more expensive due to new US tariffs

After taking a short break after its first attempt to start accepting pre-orders for the Switch 2 game console in the US, Nintendo has decided to resume them this week without raising the recommended retail price of the new product from $449. It will not be easy to keep it in light of rising customs duties, but the company will be able to ship the console to the US from Vietnam and Cambodia.

Image source: Nintendo

This is the opinion of analysts polled by Reuters, including representatives of Bernstein. They believe that if there is predictable and stable demand, Nintendo can fully cover the needs of the American market for Switch 2 by supplying the console from Vietnam and Cambodia. These directions of American imports should also be subject to tariffs of 46% and 49% on top of the base rate of 10%, but the introduction of new duties has been postponed for now. Secondly, these values ​​are still lower than the 145% that threatens the import of Chinese goods to the United States. CLSA analysts believe that Nintendo will prefer not to reflect the increase in costs when supplying Switch 2 to the United States from Vietnam and Cambodia on the increase in the retail price of the console on the American market, but to sacrifice part of the profit.

In the last fiscal year, 44% of Nintendo’s revenue came from sales in both Americas. Ampere Analysis estimates that of the 13.2 million Switch 2 consoles shipped globally this year, about 4.6 million will come from the United States. That’s about 35% of all shipments, and that’s the amount Nintendo’s contractors will need to try to ship outside of China.

The specifics of the market, according to some analysts, do not allow Nintendo to abuse the pricing policy too much. Devoted fans will be ready to pay more for Switch 2, but the bulk of sales are formed by casual game lovers who are not ready to overpay, and if necessary, they will prefer to use smartphones rather than specialized gaming devices. Moreover, Switch 2, even without taking into account the increase in duties, turned out to be noticeably more expensive than its predecessor, and this difference has already become a source of some consumer irritation. Nintendo will also not be able to fully compensate for the increase in costs by increasing the cost of branded accessories and games for similar reasons.