Overview
- Nintendo has delayed U.S. and Canadian pre-orders for the Switch 2 to assess the impact of recent tariff changes on production and pricing.
- The Trump administration's 90-day pause on increased tariffs has temporarily eased pricing pressure, with tariffs on Vietnamese imports currently at 10%.
- Analysts believe the Switch 2 will launch at its announced $450 price, but future tariff hikes to 46% could necessitate a $50 to $100 price increase.
- Nintendo is reportedly stockpiling Switch 2 units in the U.S. to mitigate potential supply disruptions ahead of the June 5 launch.
- Relocating production to the U.S. is considered unfeasible in the short term due to high costs and logistical challenges, leaving Nintendo reliant on existing manufacturing hubs.