Nintendo Switch 2 price reveal hints at affordability in Canada, leaving U.S. consumers curious about pricing details
The release of the highly anticipated Nintendo Switch 2 is just around the corner, with the official launch date set for June 5, 2025. However, the ongoing tariff environment in the U.S. may have an impact on the console's price.
U.S. tariffs, particularly the 25% tariffs on imports from Japan, South Korea, Malaysia, and a 20% tariff on Vietnamese-made electronics, have significantly increased manufacturing and import costs, affecting the tech industry as a whole. For Nintendo, which manufactures over 90% of its Switch consoles in Vietnam, these tariffs have led to increased retail prices in the U.S. market, with the current Nintendo Switch prices rising by $30-$50 starting August 2025.
Despite these cost pressures, Nintendo has so far maintained the launch price of the Switch 2 around $449.99 to stay competitive against rivals like PlayStation 6 and Xbox Series X. However, Nintendo has raised prices on legacy hardware and accessories by about 10-15% to offset tariff-related cost increases.
This strategic approach indicates a careful balance between managing margin compression caused by tariff-driven cost inflation and keeping the Switch 2 appealing on price. However, the ongoing tariff environment suggests possible upward pressure on prices if tariffs persist or increase further, potentially impacting consumer affordability and sales.
The tech supply chain is being reshaped by tariffs, with manufacturers like Nintendo being forced to absorb or pass these increased costs to U.S. consumers, thereby raising device prices. The U.S. heavily relies on the TSMC, the largest contract chip maker in the world, for the production of semiconductors used in computers, cell phones, cars, and medical devices. If chips receive a similar 25% tariff, the Nintendo Switch 2 could potentially cost $100 or more in the U.S.
In Canada, the Nintendo Switch OLED retails for $450 CAD, while the Nintendo Switch 2 is rumoured to cost $499 CAD, equating to approximately $349 USD. However, a Costco leak in the U.S. suggests the Switch 2 might retail for $399 instead.
Nintendo president Shuntaro Furukawa has stated that the company is taking a risk by proceeding with production to meet as large a demand as possible. President Trump, in a speech to Republicans on January 27, stated that the incentive is going to be that companies won't want to pay a 25, 50, or even a 100% tax. If the TSMC calls Trump's bluff, a potential 100% tax could be seen in consumer products, skyrocketing the prices of tech and tanking sales.
In conclusion, the Nintendo Switch 2's price in the U.S. currently benefits from Nintendo's strategic pricing, but the ongoing tariff environment suggests possible upward pressure on prices if tariffs persist or increase further. Consumers may want to consider purchasing the Nintendo Switch 2 sooner rather than later to avoid potential price increases.
- The tech industry, including gaming gadgets like laptops and Nintendo Switch consoles, has been affected by the recent increase in manufacturing and import costs due to U.S. tariffs.
- Nintendo, a major player in the gaming industry, has to absorb or pass on these increased costs due to the tariffs, potentially driving up the retail prices of their products, such as displays on the Switch 2.
- The ongoing tariff environment, particularly on electronics made in Japan, South Korea, Malaysia, and Vietnam, may put pressure on entertainment devices like the Nintendo Switch 2 and the PlayStation 6, increasing their prices if tariffs persist or rise further.
- As technology continues to evolve, with advancements in areas like computer chips, the potential for further tariffs could significantly impact the pricing of numerous gadgets, including the Nintendo Switch 2, making them less affordable for many consumers.
