Nintendo Could Be Selling Switch 2 Consoles ‘At a Loss’ in the US, But They Can Take It

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According to a securities analyst’s assertion, Nintendo might opt to sell each Switch 2 console at a lower profit margin or even at a loss due to the anticipated costs of materials. This is primarily because of the tariffs enforced by the U.S. government, and it considers these tariffs to remain at 10%.

Uneven Ground

As a dedicated enthusiast, I found myself pondering over a recent Bloomberg report that cast doubt on the potential impact of Trump’s tariffs on Nintendo’s financial standing.

Hideki Yasuda of Toyo Securities in Japan explained:

It’s our estimation that the cost of components for the Switch 2 amounts to approximately $400. This suggests that even with a 10% tariff, Nintendo might continue to sell these consoles at a financial loss in the US. However, such a loss seems manageable for Nintendo.

In simpler terms, since a large portion of Sony’s PlayStation manufacturing takes place in China, there’s a possibility that they might need to increase the price of the PS5 in the United States due to current circumstances.

Compared to the original Nintendo Switch launched in 2017, the anticipated price of the Nintendo Switch 2 will be significantly higher. This increase is primarily due to enhancements in quality and improvements over the initial console, as well as the factor of inflation.

According to a Bloomberg report, Robin Zhu from Bernstein outlined a potential strategy for Nintendo to increase prices should tariffs rise: Nintendo might consider price hikes in response to increased tariffs.

In simpler terms, if the tariffs remain at 10%, it’s likely that Nintendo will maintain its price point at $450, bearing the cost in reduced profit margins instead.

At 46% Vietnam tariffs, I expected them to raise by $50 to $100.

Due to these tariffs, the pre-order scenario for the Nintendo Switch 2 is experiencing significant disruption in the U.S. and Canada. Manufacturers and retailers are temporarily halting pre-orders due to uncertainty about potential future developments.

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2025-04-10 11:18