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Analysts React to Switch 2 Pre-order Chaos: 'Unhinged Times' Due to Tariffs

Apr 25,25(4 days ago)
Analysts React to Switch 2 Pre-order Chaos: 'Unhinged Times' Due to Tariffs

The roller coaster of news for U.S. gamers this week kicked off with the much-anticipated full reveal of the Nintendo Switch 2, complete with its dazzling array of games. However, the excitement quickly turned to dismay when the console's $450 price tag and the $80 cost for Mario Kart Tour were announced. The mood shifted yet again this morning when Nintendo decided to postpone pre-orders, citing the need to evaluate the impact of the Trump Administration's sweeping tariffs on global trade.

We've previously explored why the Nintendo Switch 2 is priced so high and what the industry's trade association predicts about the broader effects of these tariffs on gaming. However, the burning question remains: what will Nintendo do next? Will the Nintendo Switch 2 see an even higher price when 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, they usually provide a well-informed consensus backed by data and evidence. This week alone, I've relied on their insights twice. Yet, this time, every analyst I spoke with was stumped, offering only guesses amidst the current chaos. This unprecedented situation has left everyone—from Nintendo to the Trump Administration—unpredictable in their next moves.

With this in mind, here's a summary of what the analysts had to say:

Sky-High Switch

The analysts were split on their predictions. Dr. Serkan Toto, CEO of Kantan Games, initially thought it was too late for Nintendo to raise prices after the initial announcement. However, the delay in pre-orders has led him to reconsider. He believes Nintendo may have no choice but to increase prices for the system, games, and accessories due to the tariffs. "It is very difficult to predict, but Nintendo will likely take a few days to run simulations and then announce hikes," he stated. He wouldn't be surprised to see the Switch 2's base model priced at $500. Toto also questioned Nintendo's timing, suggesting they should have waited for the U.S. to address the tariffs before setting prices.

Mat Piscatella, senior analyst at Circana, echoed the sentiment of unpredictability but leaned towards the likelihood of price increases across the industry, including Nintendo. He noted that the tariffs' breadth and depth caught everyone off guard. Piscatella explained that Nintendo had likely made assumptions about the tariffs when setting the initial price, but the actual tariffs exceeded expectations. "Every reasonable and responsible business that relies on international supply chains will be reevaluating its US consumer pricing at this point. They have to," he emphasized.

Manu Rosier, director of market analysis at Newzoo, predicts that hardware prices will rise due to the tariffs, though he believes software prices might remain less affected thanks to the growth 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," he noted, suggesting that higher retail prices would be passed on to consumers.

Holding the Line

On the other hand, Joost van Dreunen, NYU Stern professor and author of SuperJoost Playlist, believes Nintendo will try hard to avoid raising prices. He suggests that the $449.99 price point already accounts for the volatility from Trump's tariffs. "Given the first Trump administration's impact, Nintendo, like other manufacturers, has since restructured its supply chain to mitigate such geopolitical risks," he explained. Despite the uncertainty, van Dreunen thinks Nintendo will strive to maintain the announced price, though external pressures might force a reassessment if the trade situation worsens.

Piers Harding-Rolls, games researcher at Ampere Analysis, agrees, warning that a price increase could lead to consumer backlash. He believes Nintendo is in a difficult position after announcing the launch price but suggests they may hold off on changes until 2026 if the tariffs persist. "Nintendo will not want to change the price having announced it, but I think everything is on the table now," he said, noting that any price change could affect the brand's image and consumer perception during the crucial first holiday season.

Living in Unhinged Times

Rhys Elliott, games analyst at Alinea Analytics, predicts higher prices for both Nintendo hardware and software due to the tariffs. He also referenced his earlier comments to IGN about Nintendo's strategy of offering cheaper digital editions in certain markets to encourage digital sales. Elliott painted a grim picture of the broader impact of the tariffs on the games industry, aligning with warnings from the Entertainment Software Association. He criticized the tariffs for harming the U.S. economy and consumers, stating, "We are living in…there’s no other word for it...unhinged times driven by an unhinged man (and other forces)." Elliott argued that the tariffs contradict core economic principles and will lead to a "weaker, poorer nation," with consumers ultimately bearing the cost.

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