"Nintendo Switch 2 Pre-order Chaos Sparks Industry Analyst Concerns Over Tariffs"

It’s been a tumultuous week for U.S. gamers, marked by the full reveal of the Nintendo Switch 2, followed by a wave of reactions to its $450 price tag and the $80 cost for Mario Kart Tour. The excitement quickly turned to confusion and concern when Nintendo announced a delay in pre-orders to assess the impact of the sudden, sweeping tariffs imposed by the Trump Administration on numerous countries worldwide.

We've previously explored the reasons behind the high cost of the Nintendo Switch 2 and the potential impact of these new tariffs on the gaming industry as a whole. However, the burning question now is, what will Nintendo do? Will the Nintendo Switch 2's price increase once pre-orders finally open?

Typically, when faced with such questions about the future of video games, I consult a panel of expert industry analysts. While they can't predict the future with certainty, their insights are usually well-informed and backed by data. I've already done this twice this week, but this time, the situation is different. For the first time, every analyst I spoke with was stumped. They offered guesses, but each response was heavily caveated with the unpredictability of the current situation. No one can accurately predict what Nintendo, Trump, or anyone else will do in the coming days, weeks, or months.

With that in mind, here's a summary of what the analysts said:

Sky-High Switch

Opinions were divided, but some analysts believe Nintendo will raise prices. Dr. Serkan Toto, CEO of Kantan Games, initially thought it was too late for a price hike, but the delay has changed his perspective. He predicts Nintendo will run simulations and announce price increases for the system, games, and accessories. "I hope I am wrong, but if these sky-high tariffs persist, they leave Nintendo no choice. Would you be surprised to see the Switch 2 hit $500 for the base model? I wouldn't," he remarked. He also questioned Nintendo's timing in announcing the price before the tariffs were resolved.

Mat Piscatella, senior analyst at Circana, echoed this sentiment, emphasizing the unprecedented nature of the tariffs. He believes that all businesses reliant on international supply chains will need to reassess their pricing. "The breadth and depth of the tariffs surprised everyone, not just consumers," he noted. Piscatella suggested that the U.S. might join other regions where video games are more expensive due to these tariffs.

Manu Rosier, director of market analysis at Newzoo, also predicts hardware price increases but believes software might be less affected due to the growing dominance of digital distribution. "If a 20% tariff—or any substantial increase—were to be introduced, it’s unlikely that companies like Nintendo would absorb the additional cost by cutting into their margins. In such cases, the burden could shift to consumers in the form of higher retail prices," he explained.

Holding the Line

On the other side of the spectrum, some analysts believe Nintendo will strive to maintain the announced price. Joost van Dreunen, an NYU Stern professor and author of SuperJoost Playlist, thinks the volatility from the tariffs was already factored into the Switch 2's $449.99 price. He notes that Nintendo has restructured its supply chain to mitigate such risks and historically aims for a launch price around $400, adjusted for inflation. "While I expect Nintendo will strive to maintain the $449.99 price point, the external economic pressures may eventually force a reassessment if the trade landscape deteriorates further," he said.

Piers Harding-Rolls, games researcher at Ampere Analysis, agrees, highlighting the risk of consumer backlash if Nintendo raises prices. "The company is now in between a rock and a hard place, having already announced the launch price. I have already suggested that the pricing would stay as announced until 2026 at the earliest but then might be adjusted if the tariffs stay in place," he stated. He believes Nintendo is hoping for a resolution in the coming weeks and that any price change could impact the brand's perception among U.S. consumers.

Living in Unhinged Times

Rhys Elliott, games analyst at Alinea Analytics, aligns with those predicting higher prices for both hardware and software due to the tariffs. He references his previous comments on Nintendo's strategy of offering cheaper digital editions in certain markets to encourage digital purchases. "Nintendo might have wanted to do something similar in the US, but the tariff situation is so chaotic that Nintendo was in 'wait and see' mode — and decided to hedge its bets to see if it needed to offset the tariffs," he explained.

Elliott also painted a grim picture of the broader impact of the tariffs on the gaming industry, aligning with warnings from the Entertainment Software Association. He emphasized the challenges of shifting manufacturing to non-tariff-impacted markets and the potential economic harm caused by tariffs. "These extreme tariffs will also be bad for consumers in the US but are positive for the US administration’s populist façade. Policies that lead to higher prices for everyday people amid a cost-of-living crisis are deplorable," he said, criticizing the tariffs for going against core economic principles.

Nintendo Switch 2 System and Accessories Gallery

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In these uncertain times, the gaming industry, and Nintendo in particular, face unprecedented challenges. As we await further developments, the impact of these tariffs on the Nintendo Switch 2 and the broader gaming market remains to be seen.