Nintendo Navigates New Tariffs Ahead of Switch 2 Launch
Japanese video game giant Nintendo is set to launch its highly anticipated gaming console, the Nintendo Switch 2, on June 5. The new device follows the original Switch model, which was released eight years ago and has since sold an impressive 150 million units globally. Analysts believe the upcoming console will play a vital role in ensuring the company's future profitability.
However, the launch comes at a time of increased trade tensions and new import tariff policies in the United States, posing a significant supply chain risk for Nintendo. Although the price of the device has been set at $449.99 for the U.S. market, concerns remain that additional tariffs could lead to a price hike.
In response to these challenges, Nintendo has announced that it will source its U.S.-bound consoles from Vietnam and Cambodia instead of China. "Although these countries have also been subjected to tariffs, the duties have been temporarily suspended for 90 days," the company stated.
Industry analysts suggest that despite potential price increases, dedicated gamers are likely to purchase the new console. However, the price hike could dampen interest among more casual users. Currently, 44 percent of Nintendo's total sales come from the American market, where it is projected to sell 4.6 million units this year.
