A manufacturer is ready for the next generation of hardware from the big N, and the tariff situation is not sure if it will put a damper on the Nintendo Switch 2 story.
The tension surrounding the pricing of the Nintendo Switch 2 in the US has eased thanks to the suspension of tariffs announced last week, and the console is likely to be widely available at its announced price. According to Bloomberg, the company plans to have more than enough units available to meet demand. According to new customs data provided by NBD, Hosiden Corp, one of the three main Vietnam-based Nintendo Switch 2 assemblers, shipped a total of 785,700 units in February, with 725,200 of those units shipped to the U.S. in February alone, which is more units than the previous six months combined.
With the threat of tariffs looming, Nintendo may be focusing all of its Vitenami production in the U.S., suggesting that millions of consoles could be shipped from the Asian country before the release of the next-generation platform from the big N. But it is still uncertain how the tariffs could affect the price of the Nintendo Switch 2. Robin Zhu, an analyst at Bernstein, says that if the tariffs remain at 10%, Nintendo is likely to absorb the extra cost and keep the announced price of $450 ($500 if Mario Kart World is included in the bundle) unchanged, thus making less profit from the margin.
According to him, Big N wants a thriving system that can expand its user base and make its diversification strategy focused on iconic IPs even more successful. However, if tariffs are increased to 46%, the price of the new console is expected to rise by $50 to $100, so in a worst case scenario, the price of the Nintendo Switch 2 could be $550/$600.
Given the latest developments, there’s a good chance that pre-orders for the Nintendo Switch 2 will finally begin in the US and Canada, which Nintendo postponed at the last minute last week…
Source: WCCFTech
Leave a Reply