The delay in new US tariffs has become a big win for Nintendo Switch 2, giving the company a perfect opportunity to launch its highly awaited Switch 2 console without raising prices.
Why the 90-Day Tariff Pause Is a Game Changer
A 90-day delay on the steep US import tariffs has given Nintendo a much-needed break. The company now has more time to send Switch 2 consoles to the United States, which accounts for over one-third of its total sales. This delay helps Nintendo avoid rushing or increasing prices.
Vietnam Production Focus Helps Nintendo Save Costs
Around a third of the Switch 2 units are made in Vietnam. Originally, these would have faced a 46% tariff. But now, they only have to deal with a standard 10% tariff. This change allows Nintendo to focus production in Vietnam and stockpile enough units for the US market before the tariffs are potentially raised again.
Nintendo Stock Jumps as Nintendo Switch 2 Becomes Priority
After the tariff pause announcement, Nintendo’s shares rose by 10% in Tokyo. This shows just how important the Switch 2 is for the company. With no backup product planned, Nintendo is relying heavily on the $450 Switch 2 to carry its gaming business and expand into other areas like movies, merchandise, and theme parks.
Price Strategy: Holding Firm at $450
Analysts say if tariffs stay at 10%, Nintendo is likely to keep the price at $450, even if it means making less profit. If the Vietnam tariffs had gone up to 46%, the price may have increased by $50 to $100.
US Pre-Orders Delayed Due to Tariff Uncertainty
Nintendo delayed pre-orders in the United States just hours after it announced the Nintendo Switch 2’s price and game lineup. The company wants to make sure that real gamers, not resellers, get the first batch. In the UK, priority is being given to loyal Nintendo Switch Online members.
A Crucial Window: First Launch Days Are Key
The first days of any console launch are vital. A strong start helps game sales and builds excitement. Sony’s PlayStation 5 struggled at first because of pandemic-related delays. Nintendo hopes to avoid those problems by using the 90-day window to ship as many consoles as possible.
US-China Tariffs Complicate Competition
The US raised tariffs on Chinese imports to 125%. This makes it very expensive for Nintendo to send China-made products to the US. Competitors like Sony, whose PlayStation 5 is mainly made in China, are in a tougher spot and may need to raise their prices in the US.
Nintendo Could Absorb Losses, But Not Without Risk
Experts estimate the cost to build a Nintendo Switch 2 is around $400. That means Nintendo is making little or no profit at the $450 price point, especially with the 10% tariff. Still, this is a hit the company seems willing to take — at least for now.
PC Industry Offers a Playbook for Nintendo
In early 2025, many PC brands avoided tariff troubles by shipping large inventories to the US and cutting discounts. Nintendo may follow a similar strategy while also launching a cheaper Japan-only version of the Switch 2 that will cost under $350.
Higher Costs for Hardware and Games
The original Switch was cheaper, and games were priced lower. But now, Switch 2 starts at $450 and includes a new Mario Kart World game priced at $80 — Nintendo’s most expensive console game to date. The company must convince fans that this higher price is worth it.
What This Means for Nintendo’s Future
Even though the threat of US tariffs is still there, Nintendo now has a clearer path for the Switch 2 launch. The 90-day break has allowed the company to focus on its most important release in years. Nintendo’s share price in Tokyo is almost back to where it was before the tariff announcement.
