It’s a big week for the global economy and gamers.
On Wednesday, President Donald Trump announced widespread tariffs that boomed the world’s markets. On the same day, Nintendo also announced the highly anticipated handheld console, the Switch 2.
The company said the company is priced at $450, and the bundle includes the latest Mario Kart game, $500. Bookings on Nintendo’s website will be open in early May The most dedicated user of the first generation switches on the June 5th release date.
However, by Friday, Nintendo canceled those plans.
company In a statement said It requires “assessing the potential impact of tariffs and evolving market conditions”, which makes prices rise and delays the possibility of booking dates.
more than 46 million switch consoles As of November 30, 2024, this backlash has been rapid. Players are already complaining How expensive is switch 2 It is before the price rises. By Friday, some people suggested switching the discordant chats of users, who might cross the Canadian border to avoid higher prices in the next-generation system.
Ultimately, Switch 2 is a luxury item. Given that Trump’s tariffs are expected to be even a basic necessity and widespread disruption of global supply chains, it should not be anyone’s priority.
But this is an example of how Trump can wreak havoc in an economy where Americans are accustomed to importing goods, especially consumer electronics, are relatively low.
“This is a direct response to tariffs, a direct response question,” said Shihoko Goto, a senior researcher at the Mansfield Foundation. “This is just an example of a product that a company has been hit by tariffs and we will see prices rising.”
Why Nintendo May Raise Prices
Japanese company Nintendo took preemptive steps to avoid tariffs during the first Trump administration. Starting in 2019 Move some switches for production From China to Vietnam, the United States imposes tariffs on Chinese imports.
Now the United States has effectively punished companies like Nintendo, which have brought Trump incentives to make China a friendly partner like Vietnam, a large producer of consumer electronics, shoes and clothing.
Vietnam is Obtained 46% tariffIt was one of the highest rates in the timetable announced by the White House on Wednesday. That’s because Trump tries to target Vietnam and other countries with a large surplus of trade with the United States, Believe they are “cheating” in the United States.
However, he ignored the reasons why Vietnam had a trade surplus with the United States: It’s relatively poor And it is impossible to buy many made-in-US goods.
Trade analysts also believe that Vietnam’s exports are beneficial to the country itself and its trading partners. It produces high demand goods traditionally made in China at a lower cost.
“One of the reasons we can buy fairly affordable shoes and textiles is because they are imported from places in South and Southeast Asia,” Gotto said.
The cost of exporting and exporting goods will rise when tariffs are imposed on goods in Vietnam and other manufacturing centers. Companies like Nintendo are expected to pass it on to consumers at a higher price. As a result, consumers may eventually decide that they can no longer afford optional items like the Switch 2.
“There will be a lot of belt tightening for optional consumer goods, especially on consumer electronics,” Goto said.
Why the promised login may not happen
Trump’s plan is that in the long run, companies will hope to enter the U.S. market and transfer their production to the U.S., thereby restoring domestic manufacturing. However, this seems unlikely to happen in many industries, including consumer electronics.
Daniel Ahmad, a gaming industry analyst, Posted on X Nintendo “has to spend billions of dollars to open a factory in the United States.” It could take four to five years to start the factory, and by then another U.S. president may withdraw tariffs. However, if they remain in place, the source components of the switch (such as the GPU) will be manufactured outside the United States and subject to tariffs, increasing costs. In the United States, labor costs are also 15 times higher than in Vietnam.
Add all of this to the cost of the switch is over $450. Americans are unlikely to accept such price increases, especially given that they are already trying to keep up with higher prices after the popularity.
“We want high-quality, low-cost goods, and it’s hard to do that in the United States.”
