Nintendo Holds Back Switch 2 Preorders Due to Tariffs
Nintendo has postponed preorders for its upcoming Switch 2 console, citing new U.S. tariffs as the primary reason.
Despite this, the global launch date of 5 June remains unchanged, offering fans reassurance about the release timeline.
A company spokesperson confirmed they are reviewing preorder plans to assess the impact of rising production costs.
Nintendo Shifts Switch 2 Production, Delays Preorders
U.S. Tariffs Force Rethink in Production Strategy
President Trump’s newly introduced tariffs on imported goods have created global ripples in electronics and gaming.
The Switch 2, priced at US$450 (A$699), finds itself caught in the middle of rising trade tensions.
Previously, thec company assembled most consoles in China. But recent tariff hikes made Chinese production more expensive.
In response, the company moved a large share of its manufacturing to Vietnam and Cambodia.
These countries face lower or delayed tariffs, helping company reduce cost impacts — at least temporarily.
Launch Price Sparks Reactions Across Gaming Community
Many fans expressed shock at the console’s price point. Yet analysts argue it reflects the realities of today’s market.
While US$450 may seem steep, it falls in line with historical console pricing after inflation.
The original NES launched at US$179 in 1985 — about US$525 in today’s terms.
Even more expensive was Sony’s PlayStation 3, released at US$499 in 2006 — equivalent to nearly US$782 now.
Nintendo’s Unique Business Model Faces Modern Pressures
Nintendo differs from its rivals in how it approaches hardware and games.
Unlike Sony and Microsoft, Nintendo earns profit on both hardware and its iconic first-party software.
Its consoles tend to be less powerful but more affordable, catering to casual and family-focused audiences.
“Rather than competing directly with Sony and Microsoft on technical performance, they felt Nintendo focused on delivering fun and accessible experiences through affordable technology,” researchers observed.
This strategy helped Nintendo’s 2017 Switch become one of the most successful consoles ever.
Pricing Challenges: Tariffs, Inflation, and Currency Volatility
Nintendo claims tariffs were not considered when setting the Switch 2’s current price.
“Tariffs weren’t factored into the pricing,” said Doug Bowser, president of Nintendo of America.
Still, experts argue Nintendo is unlikely to absorb these costs for long. The company is known for careful pricing and strong margins.
If tariffs on Vietnam and Cambodia rise, further price hikes may follow, even in Australia.
The Australian dollar has fluctuated in recent months, adding uncertainty to future console pricing.
The Bigger Picture: Gaming Faces Financial Reshuffling
The Switch 2’s situation reflects wider changes in the gaming industry.
Games are more popular than ever — and more expensive to make.
Development costs have soared, with major titles like Call of Duty: Black Ops Cold War reportedly costing US$700 million.
For years, cheap capital during the pandemic allowed companies to offset rising costs.
But interest rates have climbed, and money has become harder to secure.
Companies have responded with layoffs and tighter budgets.
Artificial intelligence is being pushed as a solution to drive efficiency — though with mixed results so far.
Subscription Models vs Nintendo’s Classic Strategy
Sony and Microsoft increasingly rely on ongoing subscriptions and content licensing.
Platforms like Xbox Game Pass have reshaped how players access games.
Nintendo, however, sticks to traditional one-off sales for most titles.
Its model banks on loyal fans purchasing exclusive games like Zelda and Mario Kart.
Still, experts warn even Nintendo may need to evolve.
“We’re entering a market where the line between ‘freemium’ and ‘premium’ continues to blur,” analysts explained.
“Premium games now often come with built-in expectations of ongoing monetisation.”
What Comes Next for Switch 2?
Nintendo has committed to the 5 June global launch of the Switch 2.
But preorder timing remains uncertain, as the company continues monitoring tariff developments.
Shipping data shows Nintendo’s quick shift in manufacturing locations. By April, most U.S.-bound consoles were made in Vietnam.
If tariffs expand or increase, Nintendo may either raise prices or further alter its supply chain.
Much depends on U.S. trade policy and global market shifts in the coming weeks.
For now, fans can expect the Switch 2 to arrive on schedule — but not necessarily at today’s price.
