Nintendo delays Switch 2 preorders due to tariffs, shifting production away from China to mitigate costs.
In Short
Nintendo is delaying preorders for the Switch 2 due to new U.S. tariffs, though the launch date remains unchanged.
The company is reassessing pricing strategies amidst potential increased costs and has shifted production from China to Vietnam to minimise tariff impacts.
Nintendo announced it will delay preorders for its highly anticipated Switch 2 due to new tariffs imposed by the U.S. government.
The announcement coincided with President Trump’s introduction of tariffs on imported goods, causing concern among consumers. The Switch 2, priced at $450, is aimed at expanding Nintendo’s market share in the gaming industry.
Parts of the consoles are assembled in China, which currently faces significant U.S. tariffs. Other units are manufactured in Vietnam and Cambodia, which face lower tariffs for the time being. This situation complicates pricing strategies for consumer electronics.
Original launch date
A Nintendo spokesperson confirmed they are assessing the impact of the tariffs on the preorder timeline but will maintain the original launch date of June 5. The potential for increased costs due to tariffs could affect pricing for consumers.
Shipping data indicates that Nintendo has adapted its manufacturing strategies in response to trade tensions, shifting production from China to Vietnam. By April, a significant portion of products entering the U.S. originated from Vietnam, minimising tariff exposure.
However, if tariff rates change, Nintendo may have to increase the price of the Switch 2 significantly. This price volatility creates uncertainty for consumers, especially considering the existing price point positioning the device similarly to the latest offerings from competing companies.