Like many retailers across the country, Nintendo (NTDOF) has just made a drastic move to prepare for the looming threat of tariffs.
Tariffs are taxes companies pay to import goods from overseas, and the extra cost is often passed down to consumers through price increases.
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On April 2, President Donald Trump introduced a 10% “baseline” tariff on all countries importing goods to the U.S., with roughly 60 countries seeing higher tariff rates, in an effort to free the nation from its reliance on imported goods.
Related: Nintendo unveils a highly anticipated product amid low sales
The day after this announcement, Nintendo revealed that its highly anticipated Nintendo Switch 2 will be released in the U.S. on June 5 for $450, which is $150 more than the original Switch.
Two of the Switch 2’s games already cost over $70, which is higher than the $60 price tag the original Switch games usually cost.
The Switch 2 contains a larger screen, reimagined Joy-Con 2 controllers that are magnetic, improved speed and graphical performance, and other features.
A man exits the Nintendo flagship store on Feb. 7, 2024 in New York City.
Nintendo frustrates customers with latest change
In the announcement, Nintendo revealed that pre-orders for the new device will begin on April 9 in the U.S.; however, that is no longer the case thanks to Trump’s latest round of tariffs.
“Pre-orders for Nintendo Switch 2 in the US will not start April 9 in order to assess the potential impact of tariffs and evolving market conditions,” said Nintendo in a statement.
Many consumers took to Reddit to express concern that the delay in pre-orders may mean that the company is planning to increase the price of the Nintendo Swtich 2.
Related: Nintendo’s shocking price decision frustrates fans
“Yeah, I think I’m out on the switch 2 now. Was going to pre order but I can’t throw another $100+ at this thing,” wrote one Reddit user.
“Welp, my initial estimate of waiting 2 years to buy one may end up being 4 years at this rate,“ wrote another Reddit user.
“I’m assuming the prices are getting raised for the US otherwise they wouldn’t delay the preorder date. Because what does that do if it’s still launching June 5? I’m expecting $550 and $599 here now,” said another.
Nintendo confirms a major suspicion
The move from Nintendo comes after Nintendo of America President Doug Bowser said in a recent interview with Wired that tariffs “weren’t factored into the pricing” of the Switch 2.
“It’s something we’re going to have to address,” said Browser.
He also said that Nintendo has recently been diversifying where it manufactures its hardware and accessories, shifting most of its production away from China and instead to Vietnam and Cambodia. However, Trump’s announcement on April 2 changed that strategy.
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In Trump’s announcement, he revealed that he is increasing his previous 20% tariffs on all imported goods from China to 34%. He also imposed 46% tariffs on Vietnam and 49% on Cambodia.
However, on April 9, Trump increased tariffs on China to 125%, and decreased reciprocal tariffs on all other countries to a universal 10%.
The last thing Nintendo needs is tariffs impacting its sales, which are already struggling.
In its latest earnings report, Nintendo revealed that its net sales decreased by roughly 31% year-over-year during the last nine months of 2024. Its operating profit, which is the company’s profit after expenses, shrunk by almost 47% year-over-year.
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